DynaVox looking to raise about $150 million in initial public offering this week

DynaVox looking to raise about $150M in IPO

SEATTLE — DynaVox Inc., which makes special education software and devices for people who are unable to speak, is looking to raise about $150 million in an initial public offering this week.

DynaVox, based in Pittsburgh, plans to use some of the proceeds from the IPO to buy equity interests in the business from existing owners, including members of its senior management.

About 82 percent of DynaVox’s revenue comes from its speech generating technology business. The company makes a line of devices used by people who cannot speak, such as people with Lou Gehrig’s disease, strokes or traumatic brain injuries, and children with cerebral palsy or autism.

DynaVox also makes special education software. Its Boardmaker products let teachers make symbol-based activities and adapt text-based materials for children with severe learning disabilities, brain injuries or conditions including autism.

The company plans to offer about 9.4 million shares this week, which it hopes to sell for $15 to $17 each, raising $140.6 million to $159.4 million.

Underwriters led by Piper Jaffray can buy almost another 1.4 million shares if there is strong demand for the IPO, pushing total proceeds to about $183.3 million.

In the most recent fiscal year that ended July 3, 2009, DynaVox’s net income was $8.8 million, up 21 percent from the previous 12-month period. Revenue increased 12 percent to $91.2 million in fiscal 2009.

In a Securities and Exchange Commission filing, DynaVox said it borrowed $10 million under a senior secured credit facility before the end of the most recent quarter in March, and distributed it to the company’s existing owners.

DynaVox plans to list on Nasdaq following the offering under the symbol “DVOX.”