(Reuters) — High-tech computing company Nutanix has acquired two startups to enhance its data and storage services, as the firm continues to grow its business despite a protracted delay in its initial public offering.
San Jose, California-based Nutanix said on Sunday it bought PernixData, a software company that facilitates data storage, and Calm.io, a development and automation startup, both also located in California.
Nutanix declined to disclose the price of the acquisition.
Adding the new technologies will enable Nutanix to improve the speed of its cloud computing platform and enhance or create new software products, the company said.
The chief executives of both acquired companies said their company culture and technology were complementary with Nutanix’s.
“One thing that keeps both these companies going is innovation,” PernixData CEO and Co-founder Poojan Kumar said on a call with reporters.
The deal is a move to grow Nutanix’s business while remaining in the private market, despite the company filing for an IPO in December. At the time, the company estimated raising $200 million in the deal, but has not yet priced shares.
Investors expected Nutanix – valued at $2 billion after its last financing round – to be among the first companies out in January, but a volatile market battered public technology stocks and put the IPO market into a deep freeze. The market remains challenging, with just 59 deals pricing this year, down 55 percent from the same time last year, according to Renaissance Capital, a manager of IPO-focused funds.
Technology IPOs have been particularly difficult, as buyers are reluctant about valuations. There were no technology IPOs this year until April, and there have been only seven since.
Some experts say the acquisitions will further kick out Nutanix’s IPO, as the companies will need time to integrate their employees and technology.
“Larger transactions … push out IPOs as integration and other aspects of a deal can create one more thing for investors to understand and management teams to articulate,” said Kapil Venkatachalam, principal at Technology Crossover Ventures, who was not part of the Nutanix deal.
“The acquisitions of Calm.io and PernixData are completely independent of any IPO process and have no impact on any plans,” a Nutanix spokesman said.
Nutanix posted revenue of $114.7 million for the three-month period ending in April, a 12 percent jump over the previous quarter and its strongest quarterly revenue to date. The company, however, is not profitable.
(Reporting by Heather Somerville; Editing by Andrea Ricci)