Cisco rival Arista Networks files for IPO

Mon Mar 31, 2014 8:04am EDT

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(Reuters) - Arista Networks Inc, which makes network switches for large data centers, filed for an initial public offering on Monday, the latest in a string of cloud computing firms tapping investor enthusiasm around the technology.

Arista's filing comes a week after data storage provider Box Inc filed to raise up to $250 million in one of Silicon Valley's most highly anticipated IPOs of the year.

Box rival Dropbox is expected to file plans for an IPO in the coming months.

Santa Clara, California-based Arista listed Morgan Stanley and Citigroup as lead underwriters to the offering in its IPO filing with the U.S. Securities and Exchange Commission on Monday.

The company, whose competitors include Cisco Systems Inc, said it would raise $200 million from the offering, but the final size of the IPO could be different.

The company, led by former Cisco executive Jayashree Ullal, builds switches that handle traffic at large internet data centers for companies including Facebook Inc, Yahoo Inc, Comcast Corp and Citigroup Inc.

Ullal has been CEO since October 2008 and is also Arista's largest individual shareholder, according to the IPO filing.

Cloud technology distributes large amounts of data and applications across multiple servers, allowing companies to cut costs by outsourcing data management and computing needs.

Reuters reported in November that Arista had selected banks for a possible IPO. Industry analysts have estimated that the company could be valued at about $2.5 billion.

Arista said it would list its shares on the New York Stock Exchange under the symbol "ANET". It did not reveal how many shares it planned to sell or their expected price.

The company was started in 2004 by Andy Bechtolsheim and David Cheriton, a computer science professor at Stanford University, with $100 million in funding.

The amount of money a company says it plans to raise in its first IPO filing is used to calculate registration fees. The final size of the IPO could be different.

(Reporting by Aman Shah in Bangalore; Editing by Saumyadeb Chakrabarty)

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