Caving in to the stringent technological demands of crafting digital
products, software maker Preview Systems Inc. called it quits Friday and
sold its electronic software distribution (ESD) business to Chicago’s
Aladdin Knowledge Systems for $5 million in cash.
Sunnyvale, Calif.’s Preview, which said in February that it was looking for
alternatives and intimated May 8 that it was angling for bidders to pick up
some of its assets, chose security software provider Aladdin to help satisfy
its customer base in the winding down of its operations. Like Preview, part
of Aladdin’s vision includes improving secure digital goods distribution
across the Web for e-commerce purposes.
With Preview’s ESD suite, Aladdin will inherit the ZipLock (flagship digital
goods e-commerce enabler), Vbox (creates trial versions of software apps to
give customers a “try-before-you-buy” option) and PortableStore (brings
secure digital goods to CD-ROM, DVD-ROM or OEM hard drive) product lines in
addition to a customer base of software developers.
Known for its development of commerce platforms and services for the online
distribution of digital goods, Preview is currently negotiating the sale of
its remaining assets, electronic music distribution capabilities and other
digital products. The firm plans to return remaining capital to
stockholders. It projects its cash and marketable securities will be between
$65 million and $66 million at the end of the second quarter, excluding any
proceeds from asset sales.
As it is expected that Preview Systems’ products will improve Aladdin’s
Privilege electronic licensing system, the two outfits will combine efforts
to propel research and development, customer support, sales and marketing
for their electronic distribution products going forward. At the end of the
second quarter of 2001, Preview Systems will employ approximately 30 people,
of which 20 are expected to be retained by Aladdin upon closing of the
transaction.
Vincent Pluvinage, chief executive officer and president of Preview Systems,
said he has known for a while that his company’s products would be more
commercially viable when aligned with another, larger firm.
“Because the overall market has evolved more slowly than originally
forecasted, our solution may be more viable as a product line of a larger
company than as a stand-alone public entity,” Pluvinage said Friday in a
public statement.
Pluvinage has been invited to join Aladdin’s global advisory board.
The firms expect the agreement, which is subject to Preview shareholders’
approval, to close in July.
