Date: Dec 27, 2002 Author: Caron Schwartz Ellis Source: 2013 SBIR National Conference (
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BOULDER -- Investors have made a bid to buy DataPlay Inc.'s assets with plans to resurrect business that closed Oct. 11.
DPHI Acquisitions Inc. has offered $1.5 million to purchase the bankrupt company's assets. DPHI is a joint venture of Boulder-based Almon Ventures and Hexagon Investments.
The deal requires bankruptcy court approval prior to closing, said DataPlay attorney Glenn Merrick. Merrick also indicated that he was in talks with another party that intends to make a counteroffer.
Hexagon, based in Milwaukee, had been one of DataPlay's investors. Almon Ventures was formed by longtime storage technology entrepreneurs Bill Almon Sr. and Bill Almon Jr., a father and son team
"We formed a corporation specifically to acquire the assets of DataPlay out of bankruptcy and operate DataPlay," Bill Almon Jr. said.
Of the $1.5 million, $1.3 million will go toward paying secured creditors Silicon Valley Bank and Boulder County, Almon said. "The ($200,000) leftovers are for unsecured creditors like the employees," he said. Additionally, Silicon Valley Bank would be offered an equity ownership of 8 percent of the company.
DataPlay had burned through $120 million in its four-year rise and fall.
"When we buy the assets, assuming we get a positive nod from the court, our intention is to operate as DataPlay," Almon said. Assets include intellectual property, trademarks and trade names, he said.
The resurrected DataPlay will succeed, Almon said, with a simplified business plan. ?We'll be much smaller, much more focused, and much more efficient,? he said. Almon is in discussions with the DataPlay core engineering team and suppliers to ensure they are available when DataPlay reopens it doors. "We think there's a lot of value in many of the people and look forward to be able to work with them," Almon said.
Although Almon said he is talking with DataPlay's current landlord, Woody Eaton, the company may move to a small location in Boulder County.
Rather than ponder the problems that led DataPlay to ask for Chapter 11 protection, Almon said he's more concerned with the company's successes. "They created an optical reader/writer engine, a digital media, and digital management software that all works," he said.
Almon believes DataPlay's ability to write or stamp 500 megabytes of data on a tiny disk will be critical to developing the next optical industry standard. DataPlay uses the same kind of optical technology as a CD or DVD, but in a very small form factor.
Optical technology is useful for both distributing content ? music on CDs, software on CD-ROMs, movies on DVDs, etc. ? and as a storage mechanism.
Size is important because of information technology's increasing need for portability, Almon said. ?We see the platform as being very versatile for a number of different applications. The approach we will take will focus on the device as a small-form factor storage device used for a number of uses.?
The company also will focus on business users, Almon said. ?Generally, if you look at how technologies evolve, they are used by businesses, not by consumers,? he said. ?The tack that we will take will concentrate on applications where you can start with a better value proposition and cost basis than would be required in consumer electronics.?
Both Almons are well regarded in the storage industry. Both were involved in the launch of IBM's original equipment manufacturer storage business and numerous storage startups. Almon Sr. served as president and chief operations office with Connor Peripherals prior to its acquisition by Seagate Technology Corp. Almon Jr. served as Maxtor Corp.'s vice president, worldwide marketing. Both were key to the 2001 merger of Ecrix Corp. and Exabyte Corp.
"Our offer offers a lot of advantages over liquidation,"Almon said. "It's an opportunity for Colorado to hold onto a piece of technology."
Contact Caron Schwartz Ellis at (303) 440-4950 or e-mail csellis@bcbr.com.
