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Silver Spring Cuts Amount Sought in IPO to $67 Million

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Feb. 26 (Bloomberg) -- Silver Spring Networks Inc., the maker of networking equipment for smart electricity grids, seeks to raise about $67 million in its initial public offering, less than half the amount it initially sought, after waiting more than a year and a half to proceed with the sale.

The Redwood City, California-based company is offering 3.71 million shares for $16 to $18 apiece, a regulatory filing shows. The IPO is scheduled for March 12, data compiled by Bloomberg show.

Silver Spring Networks is moving ahead with the offering, seeking less than the $150 million it said it would seek in a July 2011 filing. The company is selling all of the shares in the IPO and will raise an additional $12 million in a private placement to its biggest shareholder, Foundation Capital, according to regulatory filings.

Revenue at the power-grid networking company declined 17 percent to $196.7 million in the 12 months through December compared with the previous year. It recorded a net loss of $89.7 million, narrower than the $92.4 million loss a year earlier.

The company was founded in 2002 and provides customers with hardware and software that enable power providers to offer flexible pricing and monitor the health of power grids, according to company filings. Sales have been hurt by slow adoption of smart-grid technology, caused by uncertainty over the timing of U.S. stimulus spending and regulatory investigations, the filings show.

Goldman Sachs Group Inc. and Credit Suisse Group AG are leading the Silver Spring Networks IPO. The stock will be listed on the New York Stock Exchange under the symbol SSNI.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net