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IT infrastructure startup Nutanix plans IPO in 9-12 months-Reuters

(Reuters) – Nutanix, which builds server and storage systems, expects to file for an initial public offering in the United States within nine to 12 months, provided the wider economy is in good health, the company’s chief executive said.

Dheeraj Pandey said he was hoping for a “substantially better valuation” than the $2 billion at which Nutanix was valued in August, when it received its latest round of funding.

In an interview with Reuters, he said the company had ambitions to go public “in the next three-four quarters.”

“Assuming that macro is good, I think nine to 12 months is pretty feasible,” said the India-born chief executive, who co-founded Nutanix in 2009.

The San Jose, California-based company counts the U.S. Army, Starbucks Corp and eBay Inc among the thousand-plus customers for the data infrastructure it builds.

Using technologies similar to those used by Google Inc and Amazon Inc, its datacenter platforms eliminate the need for external storage, speed up data transfer and cut costs for its customers.

Nutanix raised $140 million in the August funding round. Backing came from Fidelity Investments and Wellington Management.

Pandey said he preferred long-term investors to hedge funds. “We could have inserted two-three hedge funds in that last round and (funding) could have gone easily another 25 to 30 percent,” he said.

Other investors in Nutanix include Riverwood, Khosla Ventures, Battery Ventures, Blumberg Capital, SAP Ventures and Lightspeed Venture Partners.

Nutanix, which has a tie-up with Dell to distribute its products, competes with companies such as Hewlett-Packard Co , IBM Corp and EMC Corp.

Based on the results of its fourth quarter ended July 31, the company reported an annualized bookings run rate in excess of $200 million.