Mysterious Deal with CoVI Technologies

06. Feb, 2008 View Comments

The CoVI website is disabled except for the opening animation, and a mysterious message is on the front page. GE’s Security division issued a press release today saying that they’ve purchased certain assets and IP at CoVI, and that certain employees will stay on board in Austin and be employed by GE now. It doesn’t say that GE has acquired CoVI, just that it has acquired IP and people. Very puzzling.

The company was founded in 2002 and raised a $16M Series A in 2003. In early 2005 they announced another $15M from Oak Investment Partners, TPG Ventures, Polycom, and Walden International. We hadn’t heard any sort of buzz on the street that cash was low, or that management was seeking buyers for the IP assets, but it certianly sounds like that’s what may have been going on behind the scenes.

Perhaps one of our readers has some insight? We do support comments you know.

Posted by Austin Startup http://www.austinstartup.com
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  • DMac
    All I know is I really could use there Tech Support Department right about now. have 60+cameras from them and could use some help. McNeilD@diebold.com
  • Anonymous Chief
    Here's the scoop I have - they raised 45 million (roughly) total so far. They laid off all employees except for product marketing, tech support and most of engineering. GE is bought the assets for under 5 million (rumor is 2 million). They are moving the employees out of there building out on 360 to a more "cost effective" location. I believe they had over 100 employees at one point - at least 70 employees in the 360 building. The deal was in the works starting the early December. I believe the employees were lead to believe it would be positive - or at least not terrible and in a way I guess it was. They get to keep their jobs after all.
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