June 6, 2014 / 2:25 PM / in 4 years

UPDATE 1-Arista Networks shares rise 35 pct in debut

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June 6 (Reuters) - Shares of Arista Networks Inc rose nearly 35 percent in their debut, valuing the network switch maker at $3.72 billion.

Arista’s IPO raised about $226 million after its offering of 5.25 million shares was priced at $43 per share, well above its expected range of $36-$40.

The company, which competes with Cisco Systems Inc, makes network switches to handle traffic at large Internet data centers.

Arista’s customers include Microsoft Corp, VMWare Inc, Facebook Inc, Yahoo Inc, Comcast Corp and Citigroup Inc.

The company was started in 2004 by Andy Bechtolsheim, co-founder of Sun Microsystems, and David Cheriton, a Stanford University computer science professor.

Cheriton and Bechtolsheim, who were among the initial investors in Google Inc, also founded Gigabit Ethernet startup Granite Systems, which Cisco acquired in 1996.

Arista introduced its first products, used in high frequency trading, in 2008. The company has also benefited from the spurt in cloud computing, big data and software defined networking.

The company’s net income rose about 87 percent, to $12.3 million, for the quarter ended March 31.

Revenue rose about 91 percent, to $117.2 million.

Arista said it would use the proceeds from the offering for general corporate purposes and to fund its working capital needs.

Morgan Stanley and Citigroup were the lead underwriters to the IPO.

Arista shares opened at $55.25 on the New York Stock Exchange on Friday and touched a high of $58.18. (Reporting by Avik Das in Bangalore; Editing by Joyjeet Das and Simon Jennings)

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