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Zultys founder, Iain Milnes, has lost the battle to retain control of his troubled telephony vendor, after US outfit Pivot VoIP won the auction for the business.
CRN exclusively revealed last week that Milnes, needed a further $1m of backing to retain control of the IP telephony vendor (CRN Online, 24 October).
Milnes was preparing for a management buy-out after the firm’s assets went up for auction under Chapter
11 bankrupcy (CRN, 2 October). The auction deadline was then delayed from 23 October to 30 October (CRN, 30 October).
Previously Milnes said only himself and Avi Weinrib, the owner of Telrad Connegy, were left in the auction. However, last week Weinrib, bidding as a newly created US entity, Pivot VoIP, secured control of Zultys.
Milnes told CRN after losing the auction: “Pivot VoIP’s acquisition of Zultys should provide assurance to existing customers that as far as possible, business will continue as usual.
“The buyer has expressed no interest in retaining the existing management so there will inevitably be some changes in the short term. I founded Zultys five years ago so I am sad to be leaving, but I hope that Zultys is in good hands.”
Milnes added the final price of Zultys was $2.65m in cash and Pivot will assume around $1m of debt.
“I will go to my grave wondering why the best technology in the world wasn’t worth a lot more,” he added. “I feel I have the skills and experience to turn a budding idea into a success. You haven’t heard the last of me.”
David Thompson, managing director at Zultys distributor Siracom, said: “Pivot will continue to develop the product and has hired a development team of former Zultys employees. Pivot has also said publicly its wants to use Zultys’ existing channels.”
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