Funds advised by Apax Partners announce the IPO of SMART Technologies, Inc.
21 July 2010
SMART Technologies, Inc. (“SMART” or “the Company”), a global provider of interactive whiteboards and complementary solutions to the education, business and government sectors, has closed an Initial Public Offering (IPO). The shares began trading on 15 July 2010 on the NASDAQ Global Select Market under the ticker symbol "SMT", and on the Toronto Stock Exchange under the ticker symbol "SMA".
The Company announced the pricing of approximately 38.8m shares in a primary and secondary sale at a price of $17 per share on 14 July 2010, raising gross proceeds of $660m, which is the largest technology IPO in the U.S. in 2010 to date based on dollar value. In spite of difficult market conditions, the deal was upsized by 10% reflecting the strong demand for the offering. In addition, the selling shareholders have granted the underwriters a 30-day option to purchase up to approximately 5.8m additional Class A Subordinate Voting Shares at the initial public offering price to cover over-allotments, if any.
The Company received net proceeds of approximately $142m from the primary offering, which it will use to repay a portion of its outstanding debt and for working capital and other general corporate purposes. Selling shareholders including Funds advised by Apax Partners and Intel Corporation received net proceeds of approximately $484m plus any proceeds from the over allotment option.
The Apax Tech & Telecom group has worked closely with SMART to support the Company’s global growth. Funds advised by Apax originally purchased a 49.9% stake in SMART in August 2007. The business has grown strongly, with revenues and adjusted EBITDA growing organically from $379m and $59m for the year end March 2008 to $648m and $166m for the year end March 2010. Apax funds continue to own approximately 28% of the Company (pre-exercise of the overallotment option) and a fund representative will hold a board seat. Apax looks forward to providing continued support to the Company’s growth going forward.
The successful offering illustrates Apax Partners’ depth of technology sector expertise and our ability to identify and develop strong growth companies over the long-term. Tech & Telecom is one of the five sectors on which Apax Partners focuses exclusively. Notable current and historic investments in the sector include Promethean World, a leader in the rapidly growing global market for interactive learning technology which successfully executed a public offering in March 2010; Sophos plc., a leading global IT security and data protection provider; Tivit, a leading Brazilian Business Process and IT Outsourcing business; Bezeq, the largest telecom group in Israel, successfully exited in April 2010; TDC A/S, the pan-European telecoms business headquartered in Denmark; Weather Investments, an international telecommunications business; and Inmarsat and Intelsat, which are both global satellite operators.
This announcement does not constitute an offer of any securities for sale