Varonis Systems Raises $450M In Upsized Secondary Offering

Varonis Systems, Inc. (NASDAQ: VRNS) priced 2.307 million shares at $195 per share to raise $450 million in its upsized secondary offering.
The offer price is at a 2% premium to its last closing price and was upsized from $400 million earlier.
The underwriters have a 30-day option to procure additional shares up to 0.346 million compared to the previous limit of 60 million.
The offering is estimated to close on February 16, 2021.
Varonis plans to utilize the offering proceeds for general corporate purposes, including working capital, capital expenditures, and potential acquisitions.
J.P. Morgan Securities LLC, Barclays Capital Inc., Jefferies LLC, and RBC Capital Markets, LLC are the joint book-running managers for the offering.
Earlier this week, the company reported its fourth-quarter results for FY20. Revenue rose 31% year on year to $95.2 million from higher subscription revenue. As a result, the operating loss halved to $7.2 million. The operating cash flow stood at $7.7 million. The closing cash balance stood at $298.3 million.
Varonis also closed the Polyrize acquisition and declared a three-for-one stock split.
Price action: VRNS shares are up 6.45% at $211.5 on the last check Thursday.

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