News | One Equity Partners
NOV032020
One Equity Partners Portfolio Company Allegro MicroSystems Inc. Completes Initial Public Offering

Successful IPO Reflects Transformative Value Creation Generated During Firm’s Three-Year Investment in Fast-Growing Market Leader

NEW YORK – One Equity Partners (“OEP”), a middle market private equity firm, today announced that its portfolio company, Allegro MicroSystems Inc. (“Allegro” or “the Company”), a global leader in sensing and power semiconductor technology, completed its initial public offering of 25,000,000 shares of common stock on the Nasdaq Global Select Market. The shares priced at $14 per share at the top end of their expected range and trade under the ticker symbol “ALGM”, raising $350 million in gross proceeds before deducting the underwriting discount and offering expenses. At the close of trading on November 2nd, the company had a market capitalization in excess of $3.7 billion. 

Headquartered in Manchester, N.H., Allegro is a manufacturer of advanced sensing and power semiconductor technology products used in automotive, industrial and infrastructure applications by more than 50 automotive original equipment manufacturers and over 10,000 customers worldwide. 

“Allegro is a leading innovator in developing world-class motion control and energy efficient systems and solutions that support advanced automotive and vehicle mobility, green energy, factory automation and other industrial applications,” said Chip Schorr, Senior Managing Director at One Equity Partners. “We’re proud of the strong progress the Company has achieved since our investment. This IPO is another example of how OEP works with exceptional management teams to drive transformational change within our portfolio companies and positions them for continued long-term success.”

“Over the last three years, it has been OEP’s pleasure to work with its excellent partners at Allegro’s majority shareholder, Sanken Electric, as well as this exceptional management team, to position Allegro for rapid growth and improve gross margins by approximately 1,000 basis points, dramatically enhancing the Company’s operational and financial profile,” said Andrew Dunn, Managing Director at One Equity Partners. “We look forward to continuing to assist Allegro on its value creation initiatives as a public company.” 

OEP completed a $291 million minority investment in Allegro in October 2017. Following the investment, OEP worked closely with Allegro’s majority shareholder, Sanken Electric, Allegro CEO Ravi Vig and senior management to launch an operational excellence program and pursue new strategic growth opportunities. Together, the team has focused on several key areas and generated significant gross margin expansion by optimizing Allegro’s manufacturing footprint, pricing strategy, and market expansion activities. The team also redesigned the Company’s sales strategy, global supply chain, and research and development process.

In August, Allegro expanded the scope of its intellectual property and product portfolio with the acquisition of Voxtel, Inc., acompany specializing in advanced photonic and 3D imaging including long-range, eye-safe light detection and ranging technology (LiDAR). This transaction combines Voxtel’s deep laser and imaging expertise with Allegro’s automotive leadership and scale to enable the next generation of Advanced Driver Assistance Systems (ADAS).

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About One Equity Partners

One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 300 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.

About Allegro MicroSystems 

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and green energy applications. For more information, please visit www.allegromicro.com.