US-based wide area network (WAN) optimisation specialist Riverbed Technology has snapped up the intellectual property assets of it bankrupt rival Expand Networks for an undisclosed sum, thought to be in the region of US$10m.
The transaction is part of…
US-based wide area network (WAN) optimisation specialist Riverbed Technology has snapped up the intellectual property assets of it bankrupt rival Expand Networks for an undisclosed sum, thought to be in the region of US$10m.
The transaction is part of the liquidation of the privately-held Israeli firm, which develops WAN optimisation products for satellite networks, after its largest creditor Plenus Venture Lending Fund petitioned the District Court of Haifa to appoint a receiver to sell Expand’s assets.
The court duly did so in October 2011, appointing Paz Rimer of law firm Rimer, Arnon & Co, and since then an auction of Expand’s assets has taken place. Local media reports claim that among the interested parties was MSS operator Inmarsat.
For its part, Riverbed emphasized that the transaction was specifically an asset purchase agreement and therefore the company would not assume any of the liabilities, debts or obligations of Expand.
Riverbed added that it plans to make available for purchase ‘new technical support offerings for Expand products, and expects to work with former Expand customers to explore promotional upgrade opportunities’.
Founded in 1998, Expand sought to rapidly gain scale through a series of funding rounds. The company raised more than US$95m since its inception, predominantly from US and Israel based venture capital investors including Discount Investment Corporation, Eurocom Group, Intel Capital and Time Warner.
However, in recent years Expand has struggled in an increasingly competitive market and with its investors unwilling to further invest in the company to help it turn a profit, Expand secured a US$7m 2-year loan from Plenus in September 2007. Despite Plenus agreeing to extend the repayment grace period by a further 2 years, Expand never got into a position to be able to pay off the loan prompting Plenus to turn to the courts.
According to reports citing court documents, Expand’s largest shareholder, Tamir Fishman, had requested the court hold off the liquidation proceedings as it was on the verge of securing a sale of the whole of the company, but the court disagreed and gave the go ahead for the company to be put into receivership.
