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ShotSpotter could raise up to USD 34mn
Posted on Friday, 19 May 2017 12:30
ShotSpotter, the company behind the audio-sensing technology that alerts law enforcement officials and security personnel when and where a gun has been fired, is raising between USD 28.00 million and USD 33.60 million in a first-time share sale.
The Californian acoustic surveillance system developer has set its initial public offering on Nasdaq at USD 10.00 to USD 12.00 apiece, which gives the company a value of as much as USD 109.36 million.
Proceeds will pay down debt and finance possible acquisitions or investments but the main reason behind the listing is to increase its financial flexibility, to create a public market for its stock and to gain access to future funding.
Established in 2001, ShotSpotter claims to be a leader in gunshot detection systems for police to identify, locate and deter gun violence as it can not only provide a location for the origin of shots but also the actual sounds for an officer to listen to.
The group offers its systems on a software-as-a-service subscription model to customers in the US, Puerto Rico, the US Virgin Islands and South Africa.
Its Spotter Flex is used in urban, high-crime areas and sends near real-time alerts to law enforcement while SST SecureCampus and ShotSpotter SiteSecure is deployed on universities, corporate campuses and key infrastructure and transportation centres.
As of 31st March 2017, ShotSpotter had 74 public safety customers in 89 cities and municipalities across the US, including four of the 10 largest cities, and six security clients covering seven higher-education campuses.
To date, almost all of the group’s revenue has been derived from contracts with local governments and their agencies, in particular the police departments of major cities.
However, to a lesser extent, federal agencies, foreign governments and higher education institutions also account for turnover.
It has bled red ink from its bottom line since inception, with losses totalling USD 6.86 million in the year ended 31st December 2016 and USD 1.56 million in Q1 2017.
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