Company Overview
| Company Name |
GIGAMON LLC |
| Company Address |
598 GIBRALTAR DR. MILPITAS, CA 95035 |
| Company Phone |
408-263-2022 |
| Company Website |
www.gigamon.com |
| CEO |
Paul A. Hooper |
| Employees (as of 3/30/2013) |
288 |
| State of Inc |
DE |
| Fiscal Year End |
12/31 |
| Status |
Filed (7/13/2012) |
| Proposed Symbol |
GIMO |
| Exchange |
New York Stock Exchange |
| Share Price |
-- |
| Shares Offered |
-- |
| Offer Amount |
$100,000,000.00 |
| Total Expenses |
-- |
| Shares Over Alloted |
-- |
| Shareholder Shares Offered |
-- |
| Shares Outstanding |
-- |
| Lockup Period (days) |
180 |
| Lockup Expiration |
-- |
| Quiet Period Expiration |
-- |
| CIK |
0001484504 |
We estimate that the net proceeds to us from the sale of shares of our common
stock in this offering will be $ million, based on an assumed initial
public offering price of $ per share, which is the midpoint of the
estimated offering price range set forth on the cover page of this prospectus,
after deducting estimated underwriting discounts and commissions and estimated
offering expenses payable by us. If the underwriters’ option to purchase
additional shares from us is exercised in full, we estimate that our net
proceeds would be $ million, after deducting estimated underwriting
discounts and commissions and estimated offering expenses payable by us. We will
not receive any proceeds from the sale of shares of our common stock by the
selling stockholders.
Each $1.00 increase or decrease in the assumed initial public offering price of
$ per share would increase or decrease the net proceeds that we receive
from this offering by $ million, assuming that the number of shares
offered by us, as set forth on the cover page of this prospectus, remains the
same, after deducting estimated underwriting discounts and commissions payable
by us. Similarly, each increase or decrease of one million in the number of
shares of common stock offered by us would increase or decrease the net proceeds
that we receive from this offering by $ million, assuming the assumed
initial public offering price remains the same and after deducting estimated
underwriting discounts and commissions payable by us.
The principal purposes of this offering are to increase our financial
flexibility, to create a public market for our common stock and to facilitate
our future access to the public equity markets.
We currently intend to use the net proceeds that we will receive from this
offering to satisfy our obligations to holders of performance units under our
2009 Performance Unit Plan, who are primarily our employees, which we estimate
will be $ in cash in the aggregate, based on an assumed initial public
offering price of $ per share, which is the midpoint of the estimated
offering price range set forth on the cover page of this prospectus. Each $1.00
increase or decrease in the assumed initial public offering price would increase
or decrease, as applicable, the cash payments by us to holders of performance
units by $ . Payments pursuant to our 2009 Performance Unit Plan will be
recorded as compensation charges.
We currently intend to use the balance of the net proceeds that we will receive
from this offering for working capital and other general corporate purposes. We
may also use a portion of the net proceeds that we receive to acquire or invest
in complementary businesses, products, services, technologies or other assets.
We have not entered into any agreements or commitments with respect to any
acquisitions or investments at this time.
We cannot specify with certainty all of the particular uses of the net proceeds
that we will receive from this offering. Accordingly, we will have broad
discretion in using these proceeds. Furthermore, the amount and timing of our
actual expenditures will depend on numerous factors, including the cash used in
or generated by our operations, the status of our development, the level of our
sales and marketing activities and our investments and acquisitions. Pending the
use of proceeds from this offering as described above, we plan to invest the net
proceeds that we receive in this offering in short-term and intermediate-term
interest-bearing obligations, investment-grade investments, certificates of
deposit or direct or guaranteed obligations of the U.S. government. We cannot
predict whether the invested proceeds will yield a favorable return.
The markets in which we compete are highly competitive. We expect competition
to intensify in the future as existing competitors bundle new and more
competitive offerings with their existing products and services, and as new
market entrants introduce new products into our markets.
We compete either directly or indirectly with Ethernet switch vendors, such as
Cisco Systems, Inc., Juniper Networks, Inc., Brocade Communications Systems,
Inc. and Arista Networks, Inc., and network management, analysis, compliance
and security tool vendors that offer point solutions that address a portion of
the issues that we solve. In the future, we expect to compete with new market
entrants, which may include our joint-development partners or other current
technology partners.
The principal competitive factors applicable to our products include:
. functionality and performance;
. price and total cost of ownership;
. ease of use;
. flexibility and scalability of deployment;
. brand awareness;
. product reliability and quality;
. interoperability with other products;
. the extent and speed of user adoption; and
. quality of service, support and fulfillment.
Although we believe that we compete favorably with respect to the above factors,
we believe that other competitors will emerge that may have greater name
recognition, longer operating histories, well-established relationships with
end-user customers or channel partners in our markets, broader product
portfolios and the ability to bundle competitive offerings with other products
and services, larger intellectual property portfolios and substantially greater
financial, technical, personnel and other resources than we have. We expect
competition and competitive pressure, from both new and existing competitors,
to increase in the future.
Company Description
We have developed an innovative solution that delivers pervasive and dynamic
intelligent visibility of traffic across networks. Our solution, which we refer
to as our Traffic Visibility Fabric, consists of distributed network appliances
that enable an advanced level of visibility, modification and
control of network
traffic. Our Fabric enables IT organizations to forward traffic from network and
server infrastructure to management, analysis, compliance and security tools in
a manner that is optimized for specific uses or functions. Our patented Flow
Mapping TM technology identifies and directs incoming traffic to single or
multiple tools based on user-defined rules that can be managed from a
centralized management console. Our Fabric is designed to help organizations
optimize the reliability, performance and security of their physical and virtual
network infrastructure, minimize capital investment in management, analysis,
compliance and security tools, reduce operating expenses and realize greater
value from the existing tools that are deployed throughout their networks.
Virtualization and cloud computing, mobility, big data and software-defined
networking are reshaping the way enterprises and service providers operate and
the way people communicate over IP networks in an increasingly connected world.
Organizations increasingly require enhanced visibility and control of their
networks through the efficient collection and analysis of network traffic flows
without degrading network performance or reliability. Our Fabric provides the
pervasive and intelligent visibility and control over network traffic, including
voice, video and data, that organizations need to successfully manage, analyze
and secure their network environments.
We sell our products directly through our own sales force and indirectly through
our channel partners. As of March 30, 2013, our end-user customers included 60
of the Fortune 100. Additionally, as of March 30, 2013, we had sold products to
over 1,000 end-user customers across many vertical markets, including seven of
the top ten U.S. retailers, eight of the top ten U.S. banks and diversified
financial services companies, six of the top ten U.S. integrated and wireless
telecommunication service providers, six of the top ten U.S. managed healthcare
providers, six of the top ten U.S. cable and satellite providers and four of the
top ten global securities and commodities exchanges, based on market
capitalization as set forth in independent industry data from S&P Capital IQ.
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Our business was founded in 2004 and originally operated by a California limited
liability company, Gigamon Systems LLC. In January 2009, Gigamon Systems LLC
contributed substantially all of its assets and certain of its liabilities to
us in exchange for all of our common stock. In January 2010, entities affiliated
with Highland Capital Partners invested in our company through the purchase of
our preferred stock. As of March 30, 2013, Gigamon Systems LLC held all of our
outstanding common stock and entities affiliated with Highland Capital Partners
held all of our outstanding preferred stock.
Our principal executive offices are located at 598 Gibraltar Drive, Milpitas,
California 95035, and our telephone number is (408) 263-2022. Our website
address is www.gigamon.com.