Instaclustr hits pause on IPO

Instaclustr is now saying an IPO is not definitely in the works, although may be an option down the track.

Open source software company Instaclustr is understood to have cooled on its plans for an initial public offering after holding education meetings with investors last month.

The company had hired Morgan Stanley for its float but is now saying an IPO is not definitely in the works, although may be an option down the track.

The earliest a deal could start to happen is in May, say sources.

Instaclustr recently bought the company Credativ, based in Germany and the US.

The sentiment from the company’s chief executive Peter Lilley comes after a major market sell off among technology stocks in recent weeks.

DataRoom flagged listing plans last year for the company that generates about $US20m of annual revenue, about 90 per cent of which is generated outside Australia.

Investors had been told that the business is growing its revenue rapidly in a high margin sector and that Instaclustr is a major beneficiary of big data driving demand for technologies to process and store data; applications and databases moving to the cloud; and the growing adoption of open source technologies. Instaclustr provides support for Apache Cassandra, a NoSQL open source database with users including Apple, Netflix, Spotify and Walmart.