Dropbox Gets $600 Million Credit Line from Six Banks Ahead of IPO
Just ahead of its initial public offering, six banks led by JPMorgan Chase & Co. have granted Dropbox a $600 million credit line, reports Bloomberg, citing people familiar with the matter. The deal is expected to close on Monday, according to the sources.
The credit gives Dropbox flexibility as it prepares its IPO, they say.
The tech company hasn’t set a specific timing for the IPO but has met with banks to discuss plans to list, sources tell Bloomberg. Rumour has it the IPO could come by the end of the year.
Last summer Dropbox CEO Drew Houston was very positive about the company’s future, as it was nearing profitability. Dropbox generated more than $1 billion in revenue, according to Houston.
Having $600 million to hand, Dropbox could use it to expand more aggressively or make acquisitions, one source said. The tech company’s rival Box Inc. went public two years ago but, over the course of that year, lost 40% of its market value.
Dropbox has changed tactics and started focusing on larger businesses, which has helped increase revenue. It has also cut costs, party by building data centers instead of relying on Amazon’s cloud storage.