France's OVHcloud re-commits to IPO after fire, gives no timetable

Sales totalled 632 million euros in 2020, OVHcloud said, reflecting a growth of about 5% from a year earlier, according to a 2019 revenue figure given earlier to reporters. This compares with the 30% yearly net sales growth reported by Amazon Web Services, Amazon's cloud computing branch, which is the world's market leader.


Reuters | Updated: 14-06-2021 11:00 IST | Created: 14-06-2021 10:31 IST
France's OVHcloud re-commits to IPO after fire, gives no timetable
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French cloud computing services provider OVHcloud re-committed on Monday to an initial public offering (IPO) on Euronext's Paris stock exchange but provided no timetable and no fundraising target.

The family-owned company had initially announced its plans in March, two days before a major blaze destroyed one of its data centers in eastern France - a disaster that had raised concerns about its capacity to go public. On Monday it reconfirmed its plans, and disclosed for the first time an annual core operating profit, saying earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to 255 million euros ($309 million) in 2020.

It did not provide a comparable figure for 2019. Sales totaled 632 million euros in 2020, OVHcloud said, reflecting a growth of about 5% from a year earlier, according to a 2019 revenue figure given earlier to reporters.

This compares with the 30% yearly net sales growth reported by Amazon Web Services, Amazon's cloud computing branch, which is the world's market leader. Amazon, along with Microsoft's Azure and Google Cloud, dominates the sector. OVHcloud said in its statement that its revenues grew at an average annual rate of over 20% in the last 10 years.

The blaze, which is still being investigated, disrupted millions of websites, knocking out government agencies' portals, banks, shops, news websites, and a chunk of the.FR webspace, according to internet monitors. The company later had to shut down two other data centers at the same site in Strasbourg after smoke was detected at an unconnected battery room.

Based in Roubaix near Belgium, OVHcloud employs 2,450 people and has more than 30 data centers worldwide. French politicians have championed OVHcloud as a possible alternative to U.S. cloud services providers, but it has so far lacked the scale and financial clout to dent their market share.

U.S. investment firms KKR and TowerBrook Capital Partners currently own 20% of OVHcloud's capital, after a combined 250 million euro investment in 2016. Klaba's family owns the rest of the shares.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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