AAA Fitbit warms up for $100m IPO

Fitbit warms up for $100m IPO

Fitbit, the US-based wearable fitness device maker backed by telecommunications company SoftBank and wireless technology producer Qualcomm, filed for an initial public offering yesterday that could raise up to $100m.

The company manufactures wearable fitness trackers that connect with an online platform which combines mobile apps, data analytics, motivational tools, and personalised fitness plans and interactive workouts. It revealed a net income of $132m in 2014 from revenue of about $745m.

Fitbit has raised approximately $83m in funding since it was founded in 2007, most recently securing $17.8m from undisclosed investors in March this year.

SoftBank Capital, SoftBank’s corporate venturing unit, led Fitbit’s $43m series D round in 2013, investing $15m, and now owns 5.6% of the company.

The series D round also featured Qualcomm Ventures, which acts as the investment arm of Qualcomm, SAP Ventures, the venture capital firm affiliated with software company SAP now known as Sapphire Ventures, and VC firms Foundry Group and True Ventures.

Foundry Group is Fitbit’s largest shareholder with a 28.9% stake, while True Ventures owns 22.4%. Past investors in the company also include SoftTech VC and Felicis Ventures, but like Qualcomm and Sapphire, they own stakes sized at less than 5%.

Morgan Stanley, Deutsche Bank Securities, and BofA Merrill Lynch have been appointed active joint book-running managers for the proposed offering, while Barclays and SunTrust Robinson Humphrey are passive joint book-running managers and Piper Jaffray, Raymond James, Stifel, and William Blair will serve as co-managers.

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