Smart plans biggest tech IPO in decade

Smart Technologies launched a long-awaited $600-million (U.S.) initial public offering on Thursday, the largest technology IPO attempted in the Canadian market in the past decade.

Calgary-based Smart dominates the market for electronic whiteboards that are replacing blackboard in classrooms and offices. The company is backed by the venture capital arm of Intel Corp. and private equity fund Apex Venture Partners. Sources close to the IPO said Smart will raise $150-million to pay down debt and for general corporate purposes. Intel and Apex plan to sell up to $450-million of subordinated voting shares.

The company posted net income of $142-million on revenue of $638-million in the year that ended March 31, according to the IPO filing. Smart plans to list its shares on the Toronto Stock Exchange and Nasdaq. In the past, investment bankers estimated that Smart could be worth $2-billion once it begins trading.

Smart was founded in 1987 by David Martin and Nancy Knowlton, and the couple are now chairman and CEO, respectively. Neither plan to sell shares in the IPO. The two founders and the two funds will continue to control Smart through their holding of multiple voting shares.

Morgan Stanley, Deutsche Bank Securities and RBC Dominion Securities are joint senior book runners for the offering.