Wednesday, October 19, 2011

Optimization Vendor Expand Goes into Urgent Assets Sale

Shmulik Shelah reports to Globes that a receiver has been assigned to Expand Networks, an Israeli vendor of optimization equipment for enterprise and satellite networks (see "Expand Networks Enables Rural Broadband with Satellite Optimization" - here), by Haifa District Court.

"Expand Networks investor Plenus Venture Lending Fund petitioned the court to appoint the receiver. Expand has been unable to repay its $10 million debt to Plenus, which was due two years ago. The appointment brings Expand Networks to an end, 13 years after it was founded, raised over $100 million, underwent several restructurings and strategic changes, and made numerous attempts to find a buyer".

"The receiver will now try to sell Expand Networks' assets. It currently has 100 employees, including 60 in Israel, but layoffs are likely within weeks, along with a change in management. Potential buyers include equipment vendors Cisco, Juniper Networks  and Riverbed, which will want to improve their position in the field, or internet optimization solutions provides, such as Akamai Technologies and Limelight Networks or even Israeli companies".
I doubt if Cisco, Juniper or Riverbed will be interested in buying Expand's assets, as they all have competitive products and Expand customer base is relatively small.

If anyone interested, the company's CEO, Elie Barr (pictured), was assigned to search a buyer.

See "Court appoints receiver for Expand Networks" - here.

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