DigitalNet IPO Pulled

One of the most-anticipated (and only) technology IPOs of the year was pulled at the last minute after underwriters decided market conditions weren't favorable.

DigitalNet, a government IT contractor, was supposed to price about 6.25 million shares at $14 to $16 through underwriters led by Citigroup and Bank of America Tuesday night. The offering would have been the first by any U.S. company in more than two months. Another tech company, credit card processor iPayment, is still set to price for a Friday open.

Both companies are losing money and one published report said customer-retention concerns might have had a role in last-minute institutional aversion to the DigitalNet deal.

The postponement is bad news for the hamstrung IPO market, where about 20 deals worth about $3.6 billion are currently registered and waiting for a green light for underwriters.

More from Opinion

Red Hat CFO Tells TheStreet: Tech Trends Are Still in Our Favor

Red Hat CFO Tells TheStreet: Tech Trends Are Still in Our Favor

Throwback Thursday: Intel Edition

Throwback Thursday: Intel Edition

Intel's Next CEO Should Try Harder to Protect Its Flanks Against AMD and Others

Intel's Next CEO Should Try Harder to Protect Its Flanks Against AMD and Others

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

Wednesday Wrap-Up: GE and Facebook

Wednesday Wrap-Up: GE and Facebook