Insights From St. Bernard’s CEO on Red Condor Acquisition
When San Diego’s St. Bernard Software announced last week that it was acquiring the assets of Rohnert Park, CA-based Red Condor, CEO Lou Ryan was not available to explain the deal, which was a somewhat-involved transaction.
When I finally caught up with Ryan by telephone, he explained that in addition to buying Red Condor’s e-mail spam-filtering technology, two of Red Condor’s longtime venture investors also made an investment in St. Bernard Software (OTCBB: SBSW) and have joined the board. As part of the deal, Menlo Park, CA-based RWI Ventures and Redwood City, CA-based ATA Ventures, along with certain individual investors, put $3 million into St. Bernard for notes that convert to St. Bernard shares, with a $1.10 conversion price. That might seem optimistic, considering that St. Bernard closed at $0.55 a share yesterday, but the stock has basically doubled since the deal was announced a week ago.
Both of the VC partners involved also have experience with networking technology companies, including both optical and wireless networks. ATA Ventures managing director Mike Hodges, who is joining St. Bernard’s board as a non-voting observer, was the interim CEO at Tellium, an optical networking company spun out of Bellcore in 1997 as a joint venture with SAIC and Ortel. RWI co-founder William Baumel, who joins St. Bernard’s board as a regular director, was a founding shareholder and chairman of Optical Solutions, which was … Next Page »