Sonos Issues $130 Million in Private Equity

Sonos files Reg D private placement. Is an IPO nigh?

When will Sonos go public?!
Julie Jacobson · December 3, 2014

Sonos has filed a Form D notice of exempt offering of securities with the SEC.

The “Reg D” filing indicates the wireless audio company made a private placement of equity worth $130 million ($129,999,974 to be exact)—the seventh private placement in the last seven years.,

Form D private placements are exempt from registration under the securities laws, so little information needs to be disclosed to the public.

There are no disclosures on the use of the proceeds, but the form indicates the equity was not issued in connection with a business combination transaction. The form also discloses that no executive officers or directors were sellers, so it appears to be a new issuance of new shares. 

The placement with accredited investors closed in November. Sonos reported revenues of $535 million for 2013, nearly twice the revenues of 2012.

Earlier this year, we pondered: When Will Sonos File for IPO? My incorrect guess was June 2014.

UPDATE: TechCrunch reports in an article called “Update: Sonos Sells Off $130M In Secondary Equity To Stave Off IPO For Its Smart Speakers”:

Sonos initally declined to comment on the news when we inquired. We originally printed that it raised $130 million, but the company now says “The funding is just a secondary round strictly raised as a part of our ongoing liquidity program for employees, not a new round of capital.” So rather than adding to its $325 million in existing funding, it’s giving equity holders a chance to cash out.

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  About the Author

Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. She's a washed-up Ultimate Frisbee player currently residing in Carlsbad, Calif. Email Julie at [email protected]

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