Astera Labs, which designs advanced chip-based connectivity products used in data centers, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise $500 million.
Astera Labs has developed its Intelligent Connectivity Platform for cloud and AI infrastructure. The platform comprises semiconductor-based, high-speed, mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors; and COSMOS, its software suite which is embedded in its connectivity products and integrated into customers' systems. Since its inception, the company has created and commercialized first-to-market PCIe, Ethernet, and CXL products, and has had more than 300 design wins. Astera Labs sells its products primarily through distributors, though it also sells directly to end customers and their manufacturing partners.
The Santa Clara, CA-based company was founded in 2017 and booked $116 million in revenue for the 12 months ended December 31, 2023. It plans to list on the Nasdaq but has not selected a symbol yet (RC ticker: ATRL.RC). Morgan Stanley, J.P. Morgan, Barclays, Deutsche Bank, Evercore ISI, and Jefferies are the joint bookrunners on the deal. No pricing terms were disclosed.
