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» VIEW ALL POSTS Sep 5 2008   3:24PM GMT

Plasmon, in need of funding, recommends $25 million private equity offer



Posted by: Beth Pariseau
Tags:
Strategic storage vendors

Optical archiving vendor Plasmon revamped its management team last December and has since rolled out a new marketing strategy focusing on offering multi-tier archiving packages with partner NetApp (see “NetApp Plasmon’s Trojan Horse in Enterprise Data Centers,” July 16).

But according to a statement released by Plasmon Aug. 8, so far that strategy hasn’t been bearing fruit. The company saw disappointing sales for the first quarter of its fiscal year (which began April 1), 20 percent below earlier predictions. “There have been some encouraging signs, including a fast-growing pipeline, especially for our newest products,” VP of global marketing Patrick Dowling said. “We remain committed to our strategy – it’s just that we’re not getting the results from sales yet.”

Today, the company notified investors that it has been approached by a private equity firm (Dowling declined to name the firm, though some reports say it’s a U.S,-based company) with an offer to take the company private for $25 million, or 0.25 pence per share on the U.K. stock exchange where it’s currently listed. It’s not a done deal yet – there’s still due diligence to be done, and shareholder agreement to get, among other things.  But “it’s our best viable option,” according to a Plasmon statement.

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