Notable Consumer Electronics M&A Transactions
August 3, 2018: Arlo Technologies (NYS: ARLO), a manufacturer and developer of security technologies and products, was spun out of Netgear (NASDAQ: NTGR) and raised $163.44 million through an initial public offering on the New York Stock Exchange under the ticker symbol of ARLO on August 3, 2018. A total of 10,215,000 shares were sold at a price of $16 per share. After the offering, there was a total of 72,715,000 outstanding shares (excluding the over-allotment option) priced at $16 per share, valuing the company at $1.16 billion or 2.84x revenue. The underwriters were granted an option to purchase up to an additional 1,532,250 shares from the company to cover over-allotments, if any.
August 2, 2018: Sonos (NAS: SONO), a developer of wireless multi-room music systems, raised $208.33 million in its initial public offering on the Nasdaq stock exchange under the ticker symbol of SONO on August 2, 2018. A total of 13,888,888 shares were sold at $15 per share. After the offering, there was a total of 98,384,619 outstanding shares (excluding the over-allotment option) priced at $15 per share, valuing the company at $1.47 billion or 1.34x revenue. In the offering, the company sold 5,555,555 shares and the selling shareholders sold 8,333,333 shares. The underwriters were granted an option to purchase up to an additional 2,083,333 shares from the company and selling shareholders to cover over-allotments, if any.
August 2, 2018: Xpeng, a developer of Internet cars and electric vehicles designed to offer autonomous driving technologies, raised CNY 4 billion of Series B+ venture funding in a deal led by Primavera Capital Group, Morningside Venture Capital and Xiaopeng He on August 2, 2018, putting the company’s pre-money valuation at CNY 21 billion. K11, Eastern Bell Venture Capital and Hillhouse Capital Group also participated in the round. Previously, the company raised $348 million of Series C venture funding in a deal co-led by Alibaba Group, Foxconn Technology Group and IDG Capital on January 29, 2018. Follow on Yunfeng Capital, China International Capital Corporation and Morning Ventures also participated in the round.
July 31, 2018: Braven, a manufacturer of speakers and accessories designed to provide portable media devices to its customers, was acquired by Zagg (NYS: ZAGG) on July 31, 2018 for an undisclosed amount. The acquisition enables ZAGG to extend its leadership position in accessories that empower mobile lifestyles by leveraging the company’s focus and prowess in product, brand, distribution, and operational excellence.
July 30, 2018: Blue(microphones), a designer and manufacturer of professional-grade microphones, reached a definitive agreement to be acquired by Logitech (NASDAQ: LOGI) for $117 million on July 30, 2018. Previously, the company was acquired by The Riverside Company through an LBO on July 12, 2013, for an undisclosed sum. U.S. Bancorp provided a loan for the transaction.
July 26, 2018: Zepp, a provider of wearable devices designed to help golfers to immediately improve their game, reached a definitive agreement to be acquired by Huami (NYS: HMI) for an undisclosed amount on July 26, 2018. This transaction is expected to significantly expand Huami’s footprint in the sports training analytics field by providing new sports products market and global product development opportunities as well as deepening Huami’s technological expertise in motion and activity-driven analysis. Previously, the company raised $15 million of Series B venture funding in a deal led by GGV Capital on January 22, 2014.