A123 Files for IPO, Discloses New Funding


A123 Systems, a Watertown, Mass.-based maker of lithium-ion batteries, has just filed for a $175 million IPO. It also disclosed another $102.1 million in venture capital funding — at $16.59 per share — for a total of more than $230 million. If that price per share were to hold, the company would be valued at around $951 million.

This is perhaps the single hottest VC-backed company in New England, with contracts to power the upcoming Chevy Volt and some of Daimler’s hybrid buses. It also has a storage grid deal with AES, and for the past two years has supplied batteries to power Black & Decker’s cordless power tools.

2007 revenue was approximately $41.4 million, while it generated around $10.3 million in Q1 2008. It reported $31 million in losses last year, and $13.9 million in Q1 2008.

Backers include North Bridge Venture Partners (13.7% pre-IPO stake), General Electric (12.7%), Motorola (8.5%), Qualcomm (8.8%), Sequoia Capital, CMEA Ventures, FA Technology Ventures, Procter & Gamble, Alliance Capital, OnPoint, Carruth Management, the Massachusetts Institute of Technology and board chairman Desh Deshpande.

Morgan Stanley and Goldman Sachs are co-managing the offering, which could be one of the first real VC-backed homeruns to come out of the cleantech sector.

Scott Kirsner has more…

Find new deal opportunities, super-charge your fundraising efforts and track top managers with VCJ. Get your FREE trial! Or subscribe now!

Take your pick!

  • Buyouts delivers exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more. Get your FREE trial or subscribe now.
  • VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. Get your FREE trial or subscribe now.