Shares in the data protection and management software company made spectacular ground, doubling in value for their IPO price per share of $22, to $44 before the exchange closed down for the weekend.
Yaki Faitelson ’s Varonis Systems, after a highly successful IPO, is now skirting the billion-dollar mark, after shares in the company, of which he is the co-owner, surpassed the most optimistic of market valuations reaching $44 a share, $25 more than had been expected when the shares were first floated.
Varonis Systems, founded in 2005 an American-Israeli by Yaki Faitelson who now holds the role of CEO and Ohad Korkus who is the company’s CTO now become the third high-tech company with strong Israeli connections in as many months to see their market valuations tickle the billion-dollar mark. The others are Waze, whose mobile navigation application was picked up by Google last year for $1 billion and Cyprus-based Viber, who are developers of a mobile communications app developer who were acquired by a Japanese high-tech giant Rakuten last month for $900 million.
The baroness software program was developed to help large organizations, both manage and analyze their unstructured data, in particular text documents, spreadsheets as well as media files.
With their headquarters in New York, where both Faitelson and Korkus are based, Varonis Systems also have a considerable footprint in Israel, with offices in Herzliya. Just less than half of the company’s 536 employees are based there. The company has increased their staff within the last three years by more than 150%
Varonis had a turnover of $74.6 million in 2013, making for an increase of 40% from the previous year, although the company did return an operating loss of $5.8 million for 2013, compared to just over $1 million the previous year.
Prior to establishing Varonis, Faitelson held a number of key management positions in the global professional services, product development and systems integration divisions of NetVision and Network Appliance, both of them based in Israel.