Netgear’s Arlo wing has been a surprise hit for the networking company. The line of cameras are relatively new to the market, but they’ve utterly dominated the connected security space, breathing new life into the company in the process.
Back in February, Netgear spun off Arlo, courtesy of unanimous board approval and announced plans to file an IPO in the process. That bit came to fruition this week, as the company filed an S-1 form with the U.S. Securities and Exchange Commission. The security camera company has also applied for the “ARLO” ticker symbol with the New York Stock Exchange. Makes sense.
As it notes in a press release tied to the news, neither the number of shares nor price range have been determined yet. Earlier this year, however, it suggested that it would issue less than 20 percent of common stock, while retaining interest on the rest. As usual, all of this is pending approval from the U.S. Securities and Exchange Commission
According to the company, “BofA Merrill Lynch, Deutsche Bank Securities, and Guggenheim Securities are acting as lead book-running managers for the proposed offering. Raymond James, Cowen and Imperial Capital are acting as joint book-running managers for the proposed offering.”
The Arlo line has been highly successful for Netgear, in spite of it playing in a crowded market alongside the likes of Ring, Nest and Canary. The unit effectively doubled revenue between 2016 and 2017, as connected home devices pushed toward mainstream acceptance.