(Reuters) – Arista Networks Inc ANET.N shares have been priced at $43 each, the Wall Street Journal said, citing sources, valuing the network switch maker at about $2.75 billion.
Arista’s IPO raised about $226 million, after its offering of 5.25 million shares was priced well above its expected price range of $36-$40.
The company, which competes with Cisco Systems Inc CSCO.O, makes network switches that handle traffic at large internet data centers for companies including Microsoft Corp MSFT.O, VMWare Inc VMW.N, Facebook Inc FB.O, Yahoo Inc YHOO.O, Comcast Corp CMCSA.O and Citigroup Inc C.N.
Arista was started in 2004 by Andy Bechtolsheim, co-founder of Sun Microsystems and David Cheriton, a Stanford University computer science professor, with $100 million in funding. Cheriton and Bechtolsheim, who were the initial investors in Google Inc GOOGL.O, also founded Gigabit Ethernet startup Granite Systems, which was acquired by Cisco in 1996.
Arista introduced its first products, used in high-frequency trading, in 2008. It has also gained traction with new uses for its products such as cloud computing, big data and software defined networking.
The company’s net income rose about 87 percent to $12.3 million, for the three months ended March 31, while revenue rose about 91 percent to $117.2 million.
Net proceeds from the offering would be used for general corporate purposes and working capital needs, Santa Clara, California-based Arista said.
Arista’s shares are expected to start trading on the New York Stock Exchange on Friday under the symbol “ANET”.
Morgan Stanley and Citigroup are the lead underwriters for the offering.