Miranda loses NVision6/02/2002 08:00:00 PM Eastern
Miranda Technologies' attempt to purchase router manufacturer NVision failed last week when a group of private investors purchased the company from ADC.
ADC, which had acquired NVision in 2000, had a deal in principle with Miranda before the investors (who include members of the NVision management team) came in with their bid. The company will continue to operate from its 40,000-square-foot facility in Grass Valley, Calif., with its current management team and work force.
NVision founder and CEO Birney Dayton says he always has a plan B in place when going through such a process. Thus, plan B was enacted. "We became aware that the Miranda deal wasn't progressing and that we needed to do something else. So we put a deal together."
Both Dayton and NVision President Charles Meyer are among the private investors. "We own the facility and equipment free and clear," Dayton says, "and we have no debt and good funding, so we're very strong and stable going forward."
According to Miranda CEO Strath Goodship, the deal between Miranda and ADC was supposed to close in April, and the price and terms of sale were agreed on. It was then up to Miranda to raise the money for the purchase, but, says Goodship, other, related financing needed to be approved at the same time for the transaction to be completed. The investor team was "one of the bidders in there, and we didn't manage to close our financing so [NVision] went ahead and did something else. It's disappointing but perfectly understandable."
He also hopes to have talks with the management team at NVision about synergies. "The personal relationships were there, and it's a great fit, so if we can work together, we would put the energy into those efforts."
Dayton agrees. "Having an ongoing relationship with Miranda is something we have an expectation of," he says. "We don't have any reason to believe it wouldn't happen."