US-based D&S Communications buys assets of failed Mako Networks
By Fiona Rotherham
Oct. 7 (BusinessDesk) - US telecommunications company D&S Communications has paid $3 million for the assets of Mako Networks from the failed network security company’s receivers.
D&S acquired the rights to all intellectual property relating to Mako’s branded network appliances and cloud-based Central Management System and said it will continue to base research and development and compliance in New Zealand. It is retaining several of Mako’s senior team including company founders Chris Massam and Simon Gamble, and core members of the R&D team. It is also looking to hire further R&D staff in New Zealand to continue product development and enhancement.
Callaghan Innovation, the government funding agency that handles R&D grants, has been investigating whether to invoke claw back provisions from grants made to Mako which went into liquidation and receivership in late August. It has drawn down $1.4 million of a Technology Development Grant.
D&S Communications has acted as an implementation and logistics partner for Mako in the United States since last year and became Mako’s primary North American distribution partner this year.
D&S chief executive Jason Kubasak said in working with Mako in the past two years it had come to respect the technology and the team’s knowledge in network security. “Given our history with Mako, we’re a natural fit as a purchaser,” he said.
It will restructure the assets and acquired companies over the next few weeks into wholly owned trading subsidiaries in four territories, New Zealand, Australia, UK, and the US.
Spark New Zealand, which placed the assets and undertakings of the company into receivership, has retained the rights to Mako’s Secure Me product in New Zealand – its rebranded version of Mako’s service. Spark is understood to be owed about $26 million.
The first receiver’s report is due out on Oct.22.
(BusinessDesk is funded by Callaghan Innovation to cover the commercialisation of innovation).