Silver Spring Networks may file for IPO in July
According to Dow Jones Clean Technology Insight, the Redwood City, California-based Smart Grid networking provider Silver Spring Networks is preparing for an IPO; and has retained Morgan Stanley and Jeffries & Co. to underwrite a public sale, likely in July this year.
Even though Dow Jones, which has cited an unnamed source ‘in the know,’ has not mentioned any estimated amount that Silver Spring Networks may be aiming at; it is expected that the company may be valued at a rather high $3 billion – particularly as it has raised almost $300 million in capital.
The reported IPO move by Silver Spring Networks comes after the earlier-this-year projections for the speedily growing cleantech sector.
Similar to companies like GridNet and SnartSynch, Silver Spring Networks is involved in offering a crucial fragment of the budding Smart Grid – namely, the apparatus that allows wireless networks to transmit energy consumption between meters, consumers and utilities.
However, the key advantage that Silver Spring has over its competitors is that its equipment is comparatively cheaper – largely because its costs are lowered due to the outsourcing of its manufacturing to a company called Jabil Circuit.
Already, Silver Spring has a deal in place with Pacific Gas & Electric for supplying the equipment for one of its Smart Grid test projects; along with similar deals with American Electric Power, Florida Power & Light, and Pepco Holdings.