Data-mining industry leader, privately owned Palantir Technologies, may make its public debut in the near future, according to Chief Executive Alex Karp. Despite Karp’s long-standing opposition to taking the ultra-high growth data analytics and security company public, recent reports show a change of heart.
Management Seeks to Share Growing Wealth Fairly with Employees
The 12-year-old firm co-founded by Stanford computer scientists and PayPal Holdings Inc. (PYPL) alumni including Peter Thiel and Joe Lonsdale, provides counterterrorism, anti-fraud and R&D acceleration software as a service (SaaS) solutions. As the next-gen tech company nears profitability and reportedly doubles in size each year, Karp says going public may be the best way for employees to cash in their shares at a fare price, reports The Wall Street Journal. (See also: Startup Analysis: How Much Is Palantir Worth?)
“The people who create the value of production, the workers at Palantir, they need to know that they have liquidity at a fair price, and this has raised a lot of questions,” said Karp.
Management assures that an IPO may not be the road Palantir takes to ensure employees share the wealth. Karp has pointing to possible options including offerings, private equity deals or consultations with investors to work with profits in order to redistribute to employees in another way.
Booming Digital Ecosystem Demands Security and Analytics Solutions
The Palo Alto, Calif.-based firm which offers a suite of software applications for integrating, visualizing and analyzing information offers data analytics and security solutions for an increasingly complex, digital ecosystem. Palantir boasts it can help organizations answer questions ranging from “How do you defend the intellectual property of companies from cyberespionage by bad actors?” to "Can you help governments save billions and identify ways to reduce spending?”
It’s likely that Karp will chose an IPO as the simplest path to ensuring employees get the fair value of their ownership as the company nears profitability. As more organizations worldwide join the cloud revolution and use big data to receive an influx of information, Palantir’s cybersecurity and big data analytics technologies will only grow in demand. (See also: Internet of Things Poses Massive Cyberthreat.)