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Silicon Valley RFID company, Savi, sells for $400 million

savi2.jpg
Who says RFID isn't hot?

RFID stands for radio frequency identification, and it is supposed to be all the rage in retail. RFID tags emit low-power radio waves, so that RFID readers can track the movement of tagged objects -- be it in retail, military or for security reasons.

We mentioned earlier that Alien, an RFID company of Morgan Hill just south of Silicon Valley, filed a "scary" IPO prospectus -- showing no profits and lots of other risks.

But now Savi Technology, of Sunnyvale, has just been sold to defense contractor Lockheed Martin for around $400 million, according to a well-placed source. Here's the Mercury News story.

Vector Capital, a San Francisco buyout firm which is the largest shareholder in Savi, is on a roll. It is the third deal worth about $400 million for the firm in just the last week. (Update: Zoli below suggests a sale of $400M may not be that big, considering Savi was valued in a private round for more than $400M just a year or so ago. Good point, and perhaps sign RFID may not be all that hot afterall. However, Vector invested in Savi early, starting at a valuation $200M or lower, according to our source, and so probably did ok.)

It is relatively unusual for defense contractors like Lockheed to buy Silicon Valley companies.


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From: Corporate Dealmaker Forum
Spinout paydays
Excerpt: In the last two weeks, there have been a couple of high multiple exits that share something in common - both LANDesk Software and Savi Technology started life as unwanted children inside much larger companies. LANDesk, an early-stage Corporate IP Spino...
Tracked: May 12, 2006 10:03 AM

Comments

How much of a "roll" this is, is questionable, IMHO. I vaguely recall a funding round a few years ago valued Savi at $400M...

Zoli Erdos on May 7, 2006 9:26 PM
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I'm not going to take the chance with Alien's numbers.

there's much better companies in the space like SmartCode, Oat etc. which are expected to IPO either in 06 or 07.

Rob on May 11, 2006 6:36 PM
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