TrendWatch Blog
Day sets up shop in Boston (where tech firms go to be acquired?)
24-Nov-2009 --
The greater Boston area, no stranger to the Web CMS world (with companies like Percussion, PaperThin, Telerik US, and Refresh Software already based in the area), is about to add yet another content management mainstay to its denizens: Switzerland-based Day Software has announced it will move its US Headquarters to Boston (from Newport Beach, CA) on December 1.
Kevin Cochrane, Day’s chief marketing officer, explained the move by saying: “It’s just inefficient for us to be anywhere other than Boston," adding that “the majority of the partners we need to work with today in the Enterprise 2.0 and Web 2.0 universe are in the Boston area...”
Day's relocation of its US headquarters to an area known for high technology probably makes good business sense, but Boston is also a hotbed of tech startups, IPOs, and merger-and-acquisition activity (or was, before the economic downturn). One wonders if Day might also be relocating to Boston to have easier access to capital markets and/or potential suitors.
Certainly, many of Day's activities over the past two years are consistent with those of a company primping itself in anticipation of sale -- including installation of new leadership. The company got a new CEO, Erik Hansen (formerly with Interwoven), in May 2008. Later that year, Kevin Cochrane (another Interwoven alumnus) joined Day as its CMO. In August 2009, Day got a new Chairman of the Board when Barry Bycoff was elected to replace Michael Moppert.
In tandem with the personnel alignments, the company showed a convincing return to profitability in the first half of 2009 (following the release of Day Communiqué 5.1, and a sudden surge of "sloshover" business from the disruptions caused by the Interwoven and Vignette buyouts).
Late in 2008, Day sold off its UK agency services subsidiary, MarketingNet, to advertising company WAA. Exactly the sort of thing that could be seen as a "trimming down" effort to clean up the balance sheet in anticipation of making the company suitor-ready.
Interestingly, before joining Interwoven, CEO Erik Hansen had been VP of Sales in EMEA for Netegrity, Inc. (the enterprise security software company which was acquired by Computer Associates in 2004). Netegrity, in turn, was founded by Day Chairman Barry Bycoff -- who lives in Boston.
With the current economic down-cycle approaching (some would say it has actually passed) its nadir, there is bound to be a vigorous M&A market when investment capital finds its way back into the tech market. Companies positioned to catch the first wave of this capital may find themselves in an enviable position if too much capital chases too few opportunities. That may be exactly what Bycoff & Co. have in mind.
Who knows? 2010 may be an even sunnier year for Day than 2009 was -- if that's possible.
- Submitted by: Kas Thomas, Analyst - Twitter: kasthomas
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