Yet another cybersecurity company is preparing for a huge initial public offering (IPO).
Security intelligence firm iSight Partners is looking to raise another $100 million ahead of a 2016 IPO that the company's chief executive believes will top $1 billion, Reuters reported.
ISight, which got attention last fall for a major report on Russian hackers spying on NATO and European Union officials, is set to join a long list of cybersecurity firms that have hit Wall Street to massive valuations and soaring stock prices.
The most recent cyber firm to go public, Rapid7, had to boost its IPO estimate ahead of its debut due to outsized demand. Its stock has since risen more than 50 percent in one month on the market.
But Rapid7’s IPO goals were just over $100 million. ISight is looking to raise 10-times that when it goes public.
And analysts are predicting the security industry will only continue to boom, as the private sector scrambles to bolster their cyber defenses. High-profile hacks at major retailers such as Target and Home Depot, big banks such as JPMorgan and large health insurers such as Anthem have put companies on edge.
As a result, information-security spending is expected to more than double to $170 billion by 2020.
On Wall Street, major cybersecurity firms have seen their stock go up 30, 40 and even 60 percent in the first half of 2015.
ISight has benefited from the spending windfall, CEO John Watters told Reuters. The firm’s revenue growth rates will exceed 50 percent this year, a significant increase over 2014, he said.
The company is also boosted by contracts with government partners, including the Department of Homeland Security.