IIS Intelligent Information Systems Ltd. (Nasdaq: IISL), the company that launched virtualization software supplier StoreAge Networking Technologies Ltd., is going out of business.
Statements filed by IIS with the Securities and Exchange Commission (SEC) this week say its board plans a voluntary liquidation, pending a meeting July 29, 2004 (see IIS Going Out).
As IIS disbands, it's making no bones about its wish to see StoreAge turn up in an acquisition or merger that helps the IIS shareholders make good; and that in turn is fueling rumors of a possible bid by one of StoreAge's many partners, which include Brocade Communications Systems Inc. (Nasdaq: BRCD) and McData Corp. (Nasdaq: MCDTA) -- both of which have OEM'd StoreAge virtualization software (see Report: Switch Is Best for Virtualization) -- or one of its investors, such as Cisco Systems Inc. (Nasdaq: CSCO).
"We are like every other private investor looking at a startup that's doing well and... looking for an exit strategy," says Jacob Herbst, a cofounder and shareholder of IIS who is now CEO and cofounder of FilesX Inc. (see FilesX Founder Counts Blessings). Beyond that, though, he won't speculate about who might bid for StoreAge.
"We have potential candidates, some very large companies, and I've gotten two or three phone calls already from additional, smaller companies since our [liquidation] statement went out," says Robi Hartman, IIS's chairman and CEO. "Now we have time to sit and wait for the right proposal."