Columbia, Maryland-based cybersecurity firm Tenable Network Security has reportedly hired investment bank Morgan Stanley to lead its initial public offering, Reuters reports.
The IPO could come as soon as this fall, and sources told Reuters that the IPO could value the company between $1.5 billion and $2 billion.
"We do not comment on rumor, speculation or financial strategies," a company spokesperson told DC Inno in an email statement Thursday. "We remain focused on building a great company and helping organizations redefine how they think about and manage Cyber Exposure and risk."
Founded in 2002, Tenable sells software used by businesses and governments to monitor cyber threats — such as those coming from unpatched software vulnerabilities. Tenable's customer base ranges from Fortune Global 500 companies (including Amazon, Apple and JP Morgan Chase) to the global public sector to mid-sized enterprises in all sectors. If the company follows through with the IPO, it would be the first venture-backed cybersecurity firm to do so in years, Reuters points out.
The company is led by Amit Yoran, who took on the CEO and chairman role in January 2017, and co-founders Renaud Deraison and Jack Huffard. Ron Gula, who now runs his own investment group, called Gula Tech Adventures, also co-founded Tenable and he led it as CEO until 2016, when he stepped down. On Tuesday, the company hired its first chief people officer, Bridgett Paradise, to head up human resources and drive Tenable's growth and international expansion.
To date, Tenable has raised $280 million. It closed a $250 million Series B round led by Insight Venture Partners in 2015, marking the largest cybersecurity raise in history. Among the company's notable past investors is In-Q-Tel, the strategic investor for the U.S. intelligence and defense communities, including the CIA.
Speculation of an IPO has been boiling for Tenable for quite some time, and many in the region have argued that another successful cyber exit is needed to secure D.C.'s spot as a top cyber hub. In December, The Washington Business Journal asked Huffard if an IPO was possible given its venture dollars and 150,000 sq. ft. of new office space.
“We have the size and scale to be attractive to public investors today, but we're very focused right now on building the business. So that's where I'll end that answer,” he told reporter Robert Terry. "We're very excited about the demand the market has, and we're investing to make it a really great company."
Even back in early 2016, DC Inno was including Tenable on our shortlist of possible local IPO candidates.
Before Tenable, Reston, Va.-based software company Appian was the most recent local company to debut in the public markets. In February, Ibex Holdings, a spinoff of D.C. global investment company The Resource Group, filed plans for an IPO. It expects to trade on the Nasdaq and has plans to raise $75 million.
