AAA Hitachi backs Silver Spring with $30m

Hitachi backs Silver Spring with $30m

Smart grid technology company Silver Spring Networks has raised $30m in debt and options, after it signed a strategic partnership with Hitachi.

The company announced the debt and option fundraising in a Securities and Exchange Commission filing on Friday. A spokeswoman confirmed the funds were from Hitachi.

This filing comes after Silver Spring said in an update to its S-1 filing last month: "In February 2012, we entered into a note purchase agreement with Hitachi and issued a convertible note with an aggregate principal amount of $30m." 

Yutaka Saito, vice president of Hitachi, said when the partnership with Hitachi was announced: "Hitachi is delighted to form a strategic alliance with Silver Spring Networks, a leading company in smart grid technology platforms around the world. Hitachi has strengths in both the power systems and information and telecommunication systems fields and has leveraged this advantage to develop smart grid systems. We are convinced that we can promote our smart grid business and create new offerings for utilities globally with Silver Spring Network’s industry-leading brand and product line-up and extensive track record."

Last year Silver Spring had revenues of $237m, up from $70.2m in 2010, and posted a net loss of $92.4m.

 Silver Spring’s past investors also included Google Ventures, the corporate venturing unit of the search engine. Its largest institutional shareholders are venture firms Foundation Capital (41.4% stake), Kleiner Perkins Caufield & Byers (9.7% stake) as well as WR Holdings (8.7%), the managing member of which is Sean E. Cullinan. Other shareholders in the company were NCD Investors (7%), Contra Costa Capital (6.1%), backed by renewable company NextEra Energy Capital,  and JVB Properties (5.8%), managed by Jack and Viki Thompson.

Other previous backers of Silver Spring include construction firm Boldt.

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