Foursticks management completes buyout

Foursticks management completes buyout

Former Foursticks employees have staged a management buyout of the company. The business will now be known as NetPriva.

Director of sales and marketing and executive chairman, Peter Vroom, said it had received third-party investment capital from local distribution partner, TurboSoft, as well as a German-based supplier, to fund the acquisition. Financial terms of the deal were not disclosed.

The team had purchased the intellectual property as well as software development and trademark rights from the former network optimisation company, he said. No debts had been assumed.

Foursticks was placed into administration in April.

The administrator, Michael Basedow of MHM, said the South Australian-based company had been experiencing ongoing liquidity problems.

Despite its history, Vroom claimed he expected NetPriva to make a profit in its first month of operations.

"The key thing having scaled down is to make sure the expenditure and income stay in line," he said.

Vroom blamed Foursticks' demise on premature expectations on sales and international growth.

"Sales were not as quick as expected - it takes time to phase in distributors to the point where they produce sales," he said.

Vroom said the company now had a total of 12 local staff, including former Foursticks chief technology officer and new chief executive, Alan Noble. Foursticks had significantly reduced its local staff to about 15 prior to going into administration, he said.

The Foursticks name will eventually be dropped in favour of the NetPriva brand. New software products would also be released in coming months.

Vroom said its initial sales strategy would be to focus on those markets already generating revenue for the company, such as Western Europe and Australia.

The company had previously attempted to generate revenue from the US.

"We won't be dashing into the US, however attractive it is, until our other areas are up and running and we have people trained," he said. "Expanding all over the world at once is a strain on the budget."

Vroom said the company would also be looking to increase its partner numbers both in Europe and locally.

This would include re-establishing a prior relationship with IBM in Australia, as well as recruiting a Citrix reseller, he said.

Foursticks had previously only maintained Citrix-based partners in Europe.

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