Open Source IPO: Sourcefire public offering

Sourcefire, a Maryland-based firm specialized in intrusion detection and prevention system technologies based on the famous Snort – originally written by Martin Roesch, founder and current Sourcefire CTO – on the 9th of March launched its Initial Public Offering.

NasdaqNasdaq by samy73

The pricing of its initial public offering of 5,770,000 shares of its common stock at $15.00 per share (before underwriting discounts and commissions). Of those shares, Sourcefire is selling 5,320,000 shares and selling stockholders are selling 450,000 shares. The estimated net proceeds to Sourcefire are $71.8 million.

Sourcefire, making business selling proprietary versions of Snort with integrated hardware and support services, has recently been a market leader by Gartner, and despite the failed acquisition by Checkpoint in 2005 Sourcefire has continued to grow.

As reported by the Magic Quadrant for Network Intrusion Prevention System Appliances:

Sourcefire has addressed criticism of relying on SNORT signatures by increasing the team doing culnerability research to the point that most signatures now are Sourcefire generated rather than SNORT generated.

Keeping it in mind I understand why the prospectus doesn’t spend many words on Sourcefire’s commitment to its community, as pointed out by Matt Asay:

While I’m happy for Sourcefire, if it doesn’t have a plan for actively seeding and feeding the Snort community, I can’t help but view it as a parasite that will limit the amount of value it can get from “its” community.

Sourcefire has proven to be committed and supportive of its community much more than others Open Source firms – whatever it means – and we should judge (and respect) them by their actions, not by a report made for potential investors.

Technorati Tags: Commercial Open Source, IPO, Sourcefire