TLDR - A reasonable value for Silver Spring (SSNI) is $21/share which compares well to the $17 mid-point of the filing range. It's a high quality company with the deal being led by Goldman. SSNI has done a crafty job positioning their story to avoid having to show that their revenues were flat in 2012 and they are losing lots of money on a GAAP basis. The deal should be priced this week.

Silver Spring Networks (SSNI) has been viewed as a "hot technology company" since they got started in the smart grid space. In a crowded field they took a page out of the Cisco playbook and emphasized "all IP" networking for utility data applications over a mess of proprietary protocols and myriad equipment "standards." It may seem like a long time ago but corporate networks used to be an alphabet soup of different closed and proprietary protocols like SNA, Frame Relay, Token Ring, etc. Now everything is ethernet and IP-based.

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