Trive-backed defence tech group Lyntris targets $528m US IPO

Defence technology company Lyntris is targeting a US initial public offering that could raise up to $528m, providing private equity backer Trive Capital with an opportunity to sell down part of its investment amid strong public-market demand for defence companies, according to a report by Bloomberg.

Lyntris plans to issue approximately 4.9 million new shares, while existing shareholders, including Trive, are offering around 19.1 million shares, according to a filing with the US Securities and Exchange Commission.

The shares are expected to be priced between $19 and $22 each. At the top of the proposed range, Lyntris would have a market capitalisation of approximately $2.53bn.

The Falls Church, Virginia-based company develops sensor, antenna and proprietary software systems for military applications. Its technology is currently deployed across more than 200 programmes supporting the US Department of Defense and allied governments.

Lyntris generated revenue of $241m in the six months ended June 30, up from $179.1m during the same period a year earlier. However, its net loss widened to $13m from $9.7m.

The company intends to use part of the IPO proceeds to repay approximately $60m of outstanding debt.

Lyntris was created earlier this year through the merger of Vitesse Systems and Accelint, both of which were previously owned by Dallas-based Trive Capital. The IPO therefore represents an important liquidity event for the private equity firm following the combination of its portfolio companies.

Evercore, Citigroup and Guggenheim Securities are leading Lyntris’s offering. The company expects its shares to trade on the New York Stock Exchange under the ticker LYNX.