An investment group led by Verari Systems founder and former CEO David Driggers is buying the assets of the troubled systems maker and is relaunching the company as Verari Technologies. The announcement comes a month after Verari shut down most of its operations and laid off the bulk of its employees. Executives at the time said the company was restructuring. A couple of weeks later, Verari's assets were put on the auction block.
Verari Systems, which appeared to be on its last legs a month ago
when it shut down most operations and laid off the bulk of its
workforce, is being brought back to life by a group of investors led by
former CEO David Driggers.
The group led by Driggers bought most of troubled systems maker's
assets at auction earlier this month, and has changed the company's
name to Verari Technologies.
The new name is now on the company's Web site, and the management
page lists Driggers as chairman and CEO. On its home page, below the
new name, is a quick message that says "Same technology. Better
In a statement released Jan. 19, Driggers said the company will
focus on blade-based high-performance computing offerings and storage
devices, as well as the modular containerized data center, named Forest.
He said the investment group he led bought all of Verari's
inventory, equipment and technologies, such as Verari's patented
Vertical Cooling Technology, BladeRack architecture and modular data
Driggers said the company will be customer-focused that will look to leverage its patents and technologies.
"We have the opportunity to go back to our roots of being a
consulting company that heavily partners to deliver custom solutions
for our customers," Driggers said in a statement. "You're going to see
a concerted effort on our part to license and promote these unique
technologies. With the ever increasing compute and storage issues our
customers are facing today, I believe we are going to be well
positioned to help them solve even the most demanding challenges."
Verari, which makes energy-efficient servers, some storage devices and the Forest containerized data center product, started shuttering
business Dec. 11, a month after rumors of its financial troubles began
circulating after the company failed to appear at the Supercomputer
Verari laid off most of its employees-there were about 225 at the
time-though some executives remained at the San Diego, Calif.,
headquarters to figure out the company's future and handle customer
At the time, then-CEO David Wright said the company was
restructuring, though he was unclear what form that restructuring would
Later that month, a notice appeared on Verari's site announcing an auction
of the company's assets by a firm called Credit Management Association, with a bid deadline of Jan. 7.
With the sale to Driggers, the company was able to avoid bankruptcy.
Some competitors, including SGI, announced it would support Verari
customers and their products, and a number of former employees have
found jobs elsewhere, according to statements on an employee networking
A statement on that site posted Jan. 18 reads:
Well, the rumors are true. ... David Driggers, the original Founder
of Verari Systems, will announce tomorrow the successful acquisition of
substantially all of Verari Systems' corporate and intellectual
property assets by an Investment Group led by Driggers. With the
purchase of substantially all of the assets, Mr. Driggers is
re-starting the Verari engine this week. The new company, Verari
Technologies, will focus on blade-based high-performance computing
solutions, modular containerized data centers and blade-based storage
development efforts. In addition, the Investment Group purchased all of
Verari's inventory, equipment and technologies and is offering
immediate support to past Verari Systems' customers.
Driggers was CEO of the company he founded until 2006, when Wright was brought in from storage giant EMC to take over.