Embattled Expand aims to settle on right suitor by new year

Partners offer full support to WAN optimisation vendor, which claims to have several offers on the table to buy or invest in it

Expand Networks is expecting to be able to clarify its long-term future by the end of the year, claiming a number of offers to buy out or invest in the company are on the table.

Both the vendor and its channel partners maintain that it is "business as usual". But sources have indicated to ChannelWeb that Expand's creditors do not expect to recoup money owed, while rivals are reporting increased interest from jumpy partners and end user customers.

Expand has been searching for new funding since a row with its main venture capital backer, Plenus, ended in a courtroom showdown. According to a statement sent by Expand to ChannelWeb yesterday, a court-appointed "special manager" is currently mulling over investment offers.

"With regard to the sale of the company and/or further investment, the special manager, appointed by the court in Haifa, has a number of offers which are going through a submission process. However, this information is highly confidential," explains the statement. "We expect to be able to make an announcement regarding the funding progress and longer-term future of the company by the end of the year."

The vendor also pointed out that "the day-to-day operation at Expand Networks remains very much business as usual."

This view was endorsed by Greg Harris, co-founder of partner Cloud Distribution.

"Everything is status quo, with no change to our contract, no change to credit lines, and no change to product supply," he added.

Ian Kilpatrick, chairman of fellow distributor Wick Hill, backed Harris' assessment. He stressed that, for him, Expand's troubles are "a commercial restructuring, rather than a company going into administration".

"This is not how some of the potentially mischievous – or perhaps just overly helpful – competitors have painted it," he added. "Expand has some really good technology in a market where there is an increasing need for it."

Sources indicate that Expand's creditors have been warned that all debts incurred before 14 October will be repaid only in the event of Plenus recouping its initial investment. Israeli news site Globes, which this week reported that Expand founder and chief executive Elie Barr has left the firm, estimates that Plenus' investment totals $10m (£6.4m).

Adam Davison, EMEA vice president of sales at rival Exinda, added that his firm has fielded enquiries from a number of partners and customers who harbour concerns about Expand's long-term viability.

"We can put a package together for Expand customers that helps them protect their initial investment in WAN optimisation," he said. "We will welcome partners into our new [channel] programme. Some are proactively contacting us."