Mimosa Funding Challenges

Archiving vendor Mimosa has recently had a couple of small financings:

  • $3M of equity in June, 2009
  • $4M of debt in November, 2009

Mimosa has never made a profit, and the recession of course has made fund-raising harder. We understand an IPO was deferred due to poor results. We understand, too, that Mimosa sought a buyer last year, but the valuations weren't acceptable to management.

No doubt management is working hard to align revenues with expenses.

We don't know the details, but presumably the cost of the recent financings has been high. In situations such as this, companies with good technology can find they're forced into a fire sale buyout. Sometimes a small short-term debt financing is an immediate precursor to a fire sale.

If an acquisition takes place, it is to be hoped that the acquirer will continue to invest in Mimosa's technology. Sadly, this doesn't always happen. Many acquisitions end in tears, especially where the purchase was inexpensive.

... David Ferris

One Comment

  1. Posted December 3, 2009 at 2:19 PM | Permalink

    When you say ‘..to align revenues with expenses’ – I’d have thought it was the other way around – aligning expenses with revenue (i.e. cutting budgets and staff headcount)

    .. KJ

  2. dferris
    Posted December 3, 2009 at 7:37 PM | Permalink

    Ooops, you’re right Ken, many thanks. It would have been clearer to talk in terms of aligning expenses with revenues rather than the converse. I see you have the makings of a Ferris Research editor!

  3. dferris
    Posted December 4, 2009 at 9:08 PM | Permalink

    Something important is going on at Mimosa. We asked them to review the bulletin before publishing, in case they had any comments. No reply–that’s unusual. And now, no further response after we publish. That’s also unusual. Something’s happening there.

    Can anyone help on this? Off the record and anonymous is fine–you can get me on 415 367 3436, or david.ferris@ferris.com.

    Thanks! David

  4. Martin
    Posted December 5, 2009 at 3:06 AM | Permalink

    Nothing important .. some people were in fact on vacation last week for Thanksgiving and had vacation this week also. (I wasn’t available for instance due to the birth of my daughter). We do have a personal life 🙂

  5. dferris
    Posted December 31, 2009 at 3:49 PM | Permalink

    …Hearing rumors that Iron Mountain has been taking a close look at Mimosa, with a view to purchase. Unclear that the deal will survive due diligence.
    –David

  6. dferris
    Posted January 9, 2010 at 10:49 PM | Permalink

    Jan 9, 2010: Just been sent this by a source:
    * I’m hearing that Mimosa are finalising a deal for their aquisition, by a ‘major vendor’
    * Rumour is that the deal will be closed at the end of the month

    David

  7. dferris
    Posted January 13, 2010 at 12:21 AM | Permalink

    Jan 12, 2010. More information from a source that wishes to anonymous:
    “Mimosa Systems had a massive layoff last week. They laid off Sales Director in Central territory, Software Engineer, Regional Sales Manager, 2 Inside Sales reps from corporate, 2 Account Development Reps, and Regional Sales Manager in the Boston area.They are struggling with funding and are going to be bought out soon. The VC aren’t funding any more money either.”

  8. dferris
    Posted January 18, 2010 at 4:24 PM | Permalink

    Just received this from someone who wishes to remain anonymous: “I’m hearing it might be NetApp; to bolster their position as a competitor to EMC”

  9. dferris
    Posted February 3, 2010 at 10:58 AM | Permalink

    More input from an industry person who wishes to remain anonymous:

    “There are strong rumors that Mimosa is a few weeks away from being acquired. Info has it that it’s not a storage vendor or Oracle, HP/EDS, Cisco, IBM, Autonomy. Anyone have more info? Last strong rumor was NetApp, and in checking with internal NetApp people that rumor is unverified.”

  10. archiving-insider
    Posted February 4, 2010 at 10:44 PM | Permalink
  11. Vlad Shafiro
    Posted February 23, 2010 at 12:53 AM | Permalink

    It is official: Iron Mountain acquires Mimosa

    http://www.reuters.com/article/idCNSGE61L0JG20100222?rpc=44

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