Security Experts:

Trustwave Files for IPO, Reveals Finances

Chicago based Trustwave Holdings, a provider of security and compliance solutions, is hoping to raise as much as $100 million in an IPO, according to a filing with the SEC yesterday. The prospectus provides a detailed look at the company’s finances and operations.

Trustwave LogoRevenue in 2010 was $111.5 million with a net loss of $4.6 million. The company is showing solid growth, as revenue for 2008 was $58.3 million, which jumped to $73.1 million in 2009. Adjusted EBITDA increased from $0.4 million in 2008 to $3.1 million in 2009 and $4.9 million in 2010.

At the end of 2010, the company had over 900,000 subscriptions to its TrustKeeper software-as-a-service compliance management offering.

With the additional capital, the company plans to grow its partner network to reach more payment card acceptance locations worldwide and develop partner networks in health care, government services and other sectors, facilitating the distribution of our solutions that address relevant regulations and standards.

The company also plans to leverage its expertise in addressing PCI compliance to further expand offerings in other data security compliance regimes including HIPAA and FISMA, among others.

Trustwave also plans to increase its international presence, primarily by growing its existing presence in the approximately 65 countries in which it has customers. Revenue from customers outside of our North America segment grew from $10.4 million in 2008 to $16.8 million in 2010, an increase of 62%.

In addition to compliance and penetration testing services, Trustwave also runs ModSecurity, the open source web application firewall (WAF) engine for Apache, developed and managed by Trustwave's security team.

In March the company released a tool that provides its enterprise clients the ability to manage all forms of penetration tests in real-time, and be presented with live, detailed test results as well as displaying rich media demonstrations including image slideshows and screen capture videos displaying how vulnerabilities can be exploited.

The number of shares to be offered and the price range for the offering have not yet been determined, but the company set a proposed maximum of $100 million in the Trustwave S-1 filing.

Trustwave IPO

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For more than 10 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.