Zultys Remnants Sold To Highest Bidder
One of three companies bidding to pick up the remains offailed VOIP hardware company, Zultys Technologies, has agreed to pay US$2.65million plus some debts to secure control of the existing product line.
Pivot VoIP, a newly minted company backed by Israeli-based Telrad(Telrad Connegy in the US) wassuccessful in its bid, TMCreports.
In that report, former Vice President of Technology forZultys, Vladimir Movshovich, who now works for Pivot related how the biddingprocess concluded.
Pivot, the successful bidder is a team of only sixemployees, formed by a core set of former Zultys engineers was the ‘last manstanding’ when rival bidder InPath was unable to best its bid which includedthe payment of ‘priority’ claims such as some back wages and taxes. The Pivotdeal also agrees to pay the members of the creditors committee a percentage ofprofits for several years.
Pivot VoIP plans to take the Zultys business and productline forward, although a change in management is inevitable.
“It was a heavy battle between Pivot and InPath,” VladimirMovshovich explained to TMC. “Both sides put everything on the table.”
Though founder and president, Iain Milne had hoped to retaincontrol of the company he was well out of the bidding, unable to meet thebidding threshold in the new round of bidding .
Also, reports Movshovich, rival bidder InPath ran out ofmoney and was unable to contract its venture capital backers to commit morefunds. With no guarantee they could go higher, presiding Judge Arthur S.Weissbrodt, allowed an end to the auction process before subsequently grantingthe motion at around 10 pm US Pacific Time last night.
Although Pivot is believed to be offering jobs to the threetech support reps at Zultys the new owner reportedly has no interest insecuring members of the Zutlys management team as witnessed by an emaildistributed by former President Milne and posted on on GregGalitizine’s VoIP Authority Blog.
Founded exactly five years ago the Zultys Technologies flameburned brightly but briefly with its failure precipitated by a unsuccessfulattempt to secure further funding earlier this year.