Chip Software Firm Simplex Files IPO
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WASHINGTON (Reuters) - Simplex Solutions Inc., whose software and services are used by chip companies like Advanced Micro Devices Inc. (NYSE:AMD - news) and Texas Instruments Inc. (NYSE:TXN - news) to help root out design flaws, filed on Monday to raise $50 million in an initial public offering.
Simplex plans to use the net proceeds for working capital and general corporate purposes as well as for potential acquisitions, it said in a filing with the Securities and Exchange Commission.
The Sunnyvale, Calif.-based company entered into a deal this month to acquire Altius Solutions Inc., a provider of system-on-a-chip design services. The merger is expected to be completed in October, Simplex said.
The number of common shares being offered to the public for the first time will be revealed later, but Simplex has gone ahead and applied for a Nasdaq listing under the symbol ``SPLX'' (Nasdaq:SPLX - news).
Credit Suisse First Boston is the lead manager of the IPO, with assistance from Robertson Stephens and SG Cowen.
Simplex said its products help customers verify, in advance of the manufacturing process, that the design of an integrated circuit will work as intended, thereby avoiding costly delays.
Some of its major backers include Intel Corp. (NasdaqNM:INTC - news), which holds an 8 percent stake, or about 1.9 million shares.
``Semiconductor, consumer electronics and other technology product manufacturers depend on their ability to launch products successfully and cost effectively within narrow market windows,'' Simplex said in its IPO prospectus.
``Delays caused by unanticipated design flaws can force product launch postponement or cancellation, resulting in the failure of products, divisions and even companies.''
Simplex said its competitors include Avant Corp. (NasdaqNM:AVNT - news) and Cadence Design Systems Inc. (NYSE:CDN - news). |
