* Underwriters include Morgan Stanley, Goldman, Citi
* Underwriters are some of company's biggest customers
* ServiceNow picks MS, Citi, Deutsche to underwrite
By Nadia Damouni
NEW YORK, March 8 Palo Alto Networks, a
security software maker, hired Morgan Stanley, Goldman
Sachs and Citigroup to lead its initial public
offering, which is expected this year, three sources close to
the matter said.
The technology company, which has about $700 million in
annual revenue, picked banks that are its largest financial
customers to underwrite its IPO, these sources said.
Palo Alto Networks, Morgan Stanley, Citigroup and Goldman
Sachs all declined to comment.
Meanwhile, technology management software maker ServiceNow
also chose some of its largest financial customers to underwrite
its IPO, including Morgan Stanley, Citigroup and Deutsche Bank
In February, sources said Goldman Sachs was one of the
underwriters of the ServiceNow IPO. But this week, two sources
said it is not among the underwriters.
ServiceNow was not immediately available for comment.
Deutsche Bank declined to comment.
Palo Alto Networks and ServiceNow are among a slew of
fast-growing technology companies that are preparing to go
public on the heels of Facebook's $5-billion filing, sensing a
window of opportunity as the stock market rallies.
These companies are expected to each be valued at $1 billion
and higher, sources previously told Reuters.