Riverbed Plans to Convert Customers of Acquired Expand

Just before year end I quoted Globes about the acquisition of Expand Networks by Riverbed (see "Riverbed to Buy Expand for $10M" - here).

Riverbed now confirms that - " it has purchased certain assets of Expand Networks, including its intellectual property, out of liquidation in Israel. Riverbed did not purchase the corporate entity of Expand Networks and has not assumed any of Expand’s liabilities, obligations or contracts". 

Riverbed also adds some more details (here) and states that it will not continue to sell Expand products -".. customers of Expand Networks are encouraged to contact Riverbed Sales for alternative solutions".

See "Riverbed Purchases Assets of Expand Networks" - here. 

[Globes]: Riverbed to Buy Expand for $10M

   

Shmulik Shelach reports to Globes that "Sources inform ''Globes'' that Riverbed is about to acquire Expand Networks for $10 million, three months after the company was put in receivership. The sale is due to be closed next week, after Expand special administrator Adv. Paz Rimer submits the deal to the Haifa District Court for approval .. This is the second time that Riverbed has considered acquiring Expand Networks. In late 2009, there were talks to acquire it for $30 million, but nothing came of them. If the court approves the sale, this will be Riverbed's first acquisition in Israel". 

Background - "Optimization Vendor Expand Goes into Urgent Assets Sale" - here.

See "Riverbed to acquire Expand Networks for $10m" - here.

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.