Coleman: Cassatt 'Close to the End'
Data center management software firm Cassatt is “close to the end” and likely to file for bankruptcy after failing to find an acquirer, CEO Bill Coleman tells Forbes. Cassatt initially sought to gain a foothold in energy management, positioning its software as a tool to help data center managers automate the cycling down of idle servers. Cassatt also focused on management of private clouds, but has failed to gain traction in an increasingly crowded market for cloud solutions. Here’s an excerpt from the Forbes article.
Coleman and others have been quietly shopping Cassatt around for several months, often nearing a deal only to see it collapse. Coleman would not say which companies were approached, but others involved with the talks said the parties included all its blue chip competitors. Google and Amazon, the source said, cut off talks early on, contending they do not want to get into the corporate computing business at present. “I have talked with about a dozen companies, all the usual suspects,” says Coleman. “There are one or two possible buyers, and a couple of flickers of interest, but pretty soon I have to think about what’s best for my shareholders.” Cassatt’s software, which Coleman said repeatedly proved its management cost-saving capability, would probably be sold in a bankruptcy to one or another major firm.
Investors in Cassatt included Warburg Pincus and New Enterprise Associates. See Forbes for more details.
chrisPosted April 29th, 2009
A shame – the savings a company the likes of ViaWest or Amazon or Rackspace could gain would more than justify the cost being rumored here in Colorado Springs – $2mm – $4mm.