Meru Networks Files For IPO

The boom in 802.11n wireless technology has produced an early IPO filing from Meru Networks, which seeks to raise capital to fund its drive into enterprise wireless markets.

The Sunnyvale, Calif. firm was founded in 2002, well before n11 began to actually be deployed. The technology -- a sort of Wi-Fi on steroids -- was formally certified last September, although several firms including Meru had been building and selling their n11 products for several months in anticipation of the IEEE approval.

"Our goal is to become the leading provider of wireless networking solutions for the enterprise," Meru states in its IPO prospectus.

"As enterprises have deployed wireless networks, many have maintained both a wired and a wireless network because wireless networks, while providing convenience, have generally not been able to deliver the performance, reliability, and predictability that enterprises require for their business-critical applications," the prospectus states. "We believe that enterprises will increasingly seek to leverage the benefits of an all-wireless network infrastructure"

While other n11 providers are also staking out positions in the 11n enterprise market, many are targeting niche markets.

In its prospectus, Meru said it recorded nearly $16 million in revenues in 2007. Its revenues approached $55 million in 2008 and it logged more than $50 million in the first nine months this year. The company also noted that its business is subject to "numerous risks" including its limited operating history.

The company's president and chief executive officer is Ihab Abu-Hakima, a former executive at Proxim Corporation.

Venture investors in Meru include Clearstone Venture Partners, Vision Capital Advisors, NeoCarta Ventures, Bluestream Ventures, D.E. Shaw, Tenaya Capital, and CID Group.

The firm listed a theoretical offering price that would raise $86 million, but neither a firm price nor an offering date has been set.