Thursday, 26 April, 2018

Dropbox and Salesforce to integrate cloud services

Dropbox and Salesforce to integrate cloud services Dropbox and Salesforce to integrate cloud services
Nellie Chapman | 12 March, 2018, 18:29

File sharing and storage company Dropbox priced its shares in its initial public offering this morning, valuing the entire company at between $7 billion and $8 billion, according to documents filed with the US Securities and Exchange Commission.

On a nondiluted basis, the company is valued around $6.7 billion, which is a closer comparison to what the company's market capitalization will be when the shares begin trading next week.

Dropbox also agreed to sell $100 million in stock to Salesforce.com's venture capital arm in a private placement concurrent with the IPO, the filing shows.

Dropbox, which was valued at $10 billion in its 2014 funding round, would be one of the biggest US enterprise technology companies to list domestically in several years.

The company said in its filing that it estimates the price of each of those shares between $16 (£11.55) and $18 (£12.99). Additionally, Salesforce Ventures, Salesforce's corporate investment group, has been an investor in Dropbox since 2014.

According to data compiled by Bloomberg, Dropbox would be the third-biggest IPO from an enterprise technology company in the last three years and the largest tech offering since Snap's IPO last year. Class C shares have no voting rights but may convert to Class A shares at any time. Each Class B share represents 10 votes.

The company first confidentially filed for an IPO at the start of the year. On a fully diluted basis including stock options, the mid-range of the IPO price range gives the company a market capitalisation of around Dollars 7.4 billion.

The San Francisco-based company reported $1.1 billion in revenue previous year, with a net loss of $111 million. Their schedule begins with meetings in NY on Monday, then in Boston later this week, a person familiar with the schedule said.

Dropbox shares will trade on the Nasdaq under the ticker symbol DBX.

Goldman Sachs & Co, JPMorgan, Deutsche Bank Securities, BofA Merrill Lynch are the lead underwriters for the public offer.