December 24, 2024
Business

EnvisioNet’s second suitor revealed

BANGOR – A California company that operates several call centers worldwide became the second prospective buyer of EnvisioNet Computer Services Inc. on Tuesday, giving the technology support firm a letter of intent to buy it.

Alorica, based in Chino, Calif., may be offering at least $12 million, said EnvisioNet spokesman Dennis Bailey, who acknowledged he hasn’t seen the actual terms of the offer. The other interested buyer, Sumaria Systems Inc. of Danvers, Mass., has offered “less that that,” he said.

“It’s early in the process,” Bailey said. “That number could grow.”

EnvisioNet, with annual revenues of up to $30 million, filed for Chapter 11 bankruptcy protection in June after Microsoft, one of biggest clients, cut back its workload in May. In its filing, EnvisioNet listed assets of more than $15 million and debts of $25.6 million, although $8 million of that debt is convertible to equity.

Alcoria employs just as many people as EnvisioNet at call centers in the U.S., Ireland and Taiwan. About 1,200 of Alcoria’s 1,700 employees handle customer support requests through e-mails, interactive Web applications or telephone calls.

Alcoria is an Internet solutions company, said Robert Martinek, director of business development. The company uses a computer application it designed to reduce the time spent helping customers because services are streamlined into one system instead of at least three.

Martinek said his company tries “to cut the support cost to clients by 20 to 25 percent” through its computer applications. Some of its clients include U.S. Robotics, eMachines, NEC and American Express.

How much Alcoria is offering to buy EnvisioNet, and how it intends to meld the company’s employees and facilities into its business plans could not be confirmed Tuesday.

“At this stage, it’s hard for me to comment on that,” Martinek said.

The offer from Alcoria almost didn’t come even after it was announced Monday that it probably would be presented in U.S. Bankruptcy Court on Tuesday.

EnvisioNet’s attorney, George Marcus, asked for two postponements in court proceedings Monday so he and company officials could have time to accept Alcoria’s offer.

In court early Tuesday afternoon, Marcus announced that the offer hadn’t been received. The proceedings continued, however, with Marcus asking Judge James Haines Jr. to approve a $1.5 million financing package to infuse much needed cash into EnvisioNet.

Included in the financing package was a loan offer of $375,000 from Sumaria.

Shortly after Haines approved the funding package, another attorney handed Marcus a letter of intent from Alorica.

“I didn’t expect him, nobody expected him to make the announcement,” Bailey said. “It’s been explained to me as an enhanced offer over the other offer. It’s better than the last one but may not be better than the next one. EnvisioNet likes the sound of this offer, and they are excited about this offer, but tomorrow there could be other offers.”

Haines is expected to open a formal bidding process for the company now that two offers have been received, and that should bring in numerous more, Bailey said.

Two other businesses are being given serious consideration as buyers, and the company is willing to evaluate more if they meet the interests of the company and its creditors, said EnvisioNet founder Heather Blease earlier this week.

On Tuesday, EnvisioNet still received preliminary approval to secure the $1.5 million in funding even though the other offer came through. Instead of Sumaria being listed in the court order as loaning $375,000, it is mentioned that the money will come from the eventual buyer.

Also loaning EnvisioNet money as part of the finance package approved Tuesday are the state Department of Economic and Community Development, with $200,000; Coastal Enterprises Inc., with $425,000; and the Finance Authority of Maine, with $500,000.


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