Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Xiotech Snaps Up Daticon

SAN systems vendor Xiotech Corp. has swooped in to acquire troubled document management vendor Daticon Inc. in an attempt to bolster its compliance story.

Daticon, which converts electronic and paper documents into a single electronic database, filed for Chapter 11 bankruptcy protection earlier today, capping a turbulent few years for the Norwich, Conn., firm.

Last October, Daniel L. Gordon, former chairman of the Daticon board and one-time Merrill Lynch exec, was sentenced to 42 months in prison for defrauding Merrill Lynch out of $43 million. Gordon used some of these ill-gotten gains to purchase a 70 percent share in Daticon, sowing the seeds of financial turmoil.

But Xiotech CEO Casey Powell tells Byte and Switch that Daticons woes were no impediment to an acquisition. “We remain convinced that these guys have a pretty significant business underneath them,” he explains. Powell added that converting documents into an electronic format enables IT managers to retrieve critical data much more easily.

Users are currently under siege from a barrage of different data regulations, from Sarbanes-Oxley to a slew of new privacy laws, prompting many CTOs to rethink their data storage strategies. (See Users Splash Cash on SOX and NY Data Law Takes Effect.)

  • 1