US firm puts dismantled Datareach back together

By PETER GRIFFIN IT editor

Technology lab Datareach has been saved from closure after an American company bought the Napier firm's assets in a liquidation sale and rehired 19 staff.

Datareach, which makes technology that speeds up internet services delivered over poor-quality lines, looked set to disappear last December when its Australian parent, Tennyson Networks, collapsed.

Tennyson tried to negotiate an A$10 million ($11.42 million) rescue package with Australian investment company Neoside to save Tennyson and its New Zealand arm, but the deal fell through and PricewaterhouseCoopers was appointed as liquidator of Datareach.

California-based Anacapa Ventures, which several years ago wanted to buy the development lab from then-owner Ericsson, has now stepped in to revive the company.

In a deal Anacapa's Philip Myers described as "putting Humpty Dumpty back together" assets were bought from the liquidator, intellectual property was bought from Ericsson and 19 of the 25 staff who had been stood down without pay were rehired.

Business has boomed in Poland for Datareach, and Myers expects to expand to eastern European countries with poor-quality telecoms networks.