AAA Shotspotter shoots to IPO

Shotspotter shoots to IPO

Communications technology producer Motorola Solutions exited US-based gunfire detection and analysis technology producer Shotspotter on Tuesday in a $30.8m initial public offering on Nasdaq.

The company issued 2.8 million shares priced at $11.00 each, in the middle of the $10 to $12 range it set last week. Its shares closed at $13.86 on its first day of trading yesterday.

Shotspotter provides gunshot detection and location technology to law enforcement and security services through a software-based subscription model. The system combines cloud software with internet-connected sensors and communication networks.

The IPO comes after $61m in venture funding, according to securities filings and press reports, with Motorola Solutions Venture Capital, the corporate venturing unit formed by Motorola Solutions, participating in a $12m round in 2012.

The stake held by Motorola Solutions Venture Capital was diluted from 15.6% to 10.8% in the offering while Lauder Partners remains Shotspotter’s largest shareholder, with a 26.2% stake.

Other notable investors include Claremont Creek Ventures (a 7.8% share post-IPO), RT Groos (6.9%) and Labrador Ventures (4.2%).

Roth Capital Partners is book-running manager for the IPO while Northland Capital Markets is co-lead manager and Imperial Capital co-manager. They have a 30-day option to buy another 420,000 shares, which round boost the size of the offering to approximately $35.4m.

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