Silicon Valley RFID company, Savi, sells for $400 million
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.
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.
Links to blogs that reference this entry: