Acacia Communications Pops in 1st MA Tech IPO of 2016May 13, 2016
by Kyle Coffee
Acacia Communications, a network technology company based in Maynard, Mass., announced its IPO and began publicly trading on Friday morning. The company raised $104 million by offering 4.5 million shares at $23, which marked the high end of its set expectations (listed at $21 to $23). As of late Friday morning, the stock price was up 36 percent at $31.20, as of this writing. Acacia Communications is listed on the Nasdaq under the symbol $ACIA.
Founded in 2009, Acacia Communications raised its most recent venture financing in 2013, a $20 million Series D round led by Summit Partners, which joined existing backers Matrix Partners and Commonwealth Capital. Matrix had led the company's seed and Series A rounds in 2009, a spokeswoman said.
Unlike many other tech IPOs, Acacia is quite profitable. According to itsamended S-1 filing, Acacia Communications’ 2015 net income was $40.52 million on $239 million in revenue, up from $13.52 million net income on $146 million in revenue in 2014.
Acacia Communications creates high-speed coherent optical interconnect products for communications networks, according to its website. Cloud infrastructure operators and content and communication service providers (such as Comcast and Verizon) then use the modules to provide internet connectivity.
According to the Boston Business Journal, Acacia Communications’ public offering marks the first Massachusetts tech IPO of 2016, and the seventh overall. Six biotech firms, including Cambridge’s Proteostasis Therapeutics, have gone public in 2016. The seven total IPOs make Massachusetts the state with the most so far this year.
Dell's public-market spinoff of SecureWorks, its IT security business, was the first tech IPO nationwide in 2016.
Editor's note: An earlier version of this story included errors in Acacia's location and its funding history. It's headquartered in Maynard, which is in Metro West, not Western Mass.; Its Series D financing was led by Summit, not its Series A.