Platinum Technology has finalised plans to acquire VRML software developer Cosmo Software from parent company Silicon Graphics for an undisclosed amount. Platinum officials, however, described the deal as "worth billions" to Platinum, adding that the acquisition price was so low it could have been "literally free."
"I think SGI blundered with a gem," said Platinum President and CEO Andrew "Flip" Filipowski.
"They've invested $US90 million, maybe more - that's what they'll admit. They almost got it [Cosmo] sold to Sony. Because none of the developers would stay, Sony walked away from the deal and we were the only ones to attract the people."
When the Sony deal fell apart, SGI was apparently determined to unload the subsidiary as soon as possible and Platinum was both willing and able to take advantage of the situation, said Filipowski.
"SGI at this point had an edict that it [Cosmo] had to be taken off the books to stem the tide of what they perceived to be investment that they couldn't afford to make," he added.