Costa Mesa-based Emulex Corp., which has been linked to sale talks, has reached an agreement with its largest shareholder that delays a potentially looming proxy battle.
The networking equipment maker and New York hedge fund Elliott Management Corp. extended a stand-still agreement to Sept. 20 that involves proxy contests or other transactions, according to a filing with the Securities and Exchange Commission.
The agreement, originally inked in late March, was set to expire Aug. 12.
Emulex has already made concessions to Elliott with the appointment of two of Elliott’s nominated directors in April.
The hedge fund, which has a history of high-profile sales and acquisitions in the technology sector, became Emulex’ largest shareholder in late 2012 after boosting its stake past 11%. It joined a chorus of shareholders this year who opposed the company’s $120 million buy of New Zealand-based Endace Ltd., which developed technology that records, visualizes and monitors network traffic.
Emulex designs and makes networking equipment that connects storage, servers and data centers.
The Business Journal in early July reported that Emulex hired Goldman Sachs to seek a potential sale, a move that propped up its share price.
Later that month, the company announced several management changes that included the promotion of Jeff Benck to chief executive. Benck, who held the titles of president and chief operating officer, replaced Jim McCluney, who was named executive chairman of the board. Paul Folino stepped down from his role as executive chairman and is now a director.
In other McCluney news, the longtime tech exec recently was named an independent director at Irvine-based printed circuit board maker Multi-Fineline Electronix Inc.
Publisher Offers Content Customization
Los Alamitos-based IEEE Computer Society, which publishes 13 tech-related magazines, has developed a new tool that lets readers customize content.
MyComputer allows users to choose three subject areas from a list of 30 that aggregates dozens of news stories, research papers and peer-reviewed articles that are sent to an inbox. Users can download 24 articles or papers annually, with an option to purchase a dozen more.
IEEE, like most publishers, is wrestling with a challenging business model of print versus the less-lucrative medium of digital.
“I think the biggest thing we’re offering is choice,” said Evan Butterfield, IEEE’s director of products and services. “The traditional subscription model is hard to maintain.”
The service, which costs $25 for members and $45 for nonmembers at introductory prices, includes the digital edition of Computer, the society’s flagship magazine. IEEE’s membership eclipses 400,000 globally through its 30 societies.
Startup Raises Money
Aliso Viejo-based startup Arkami Inc. has raised $1.8 million in a Series A funding round from angel investors to help it bring its debut product to market this year.
MyIDkey allows users to access stored passwords and other critical information on a Bluetooth or USB device through a biometric fingerprint.
Backers included OC local Gordon Clemons of Verity Ventures, McNeel Capital in Florida and angel investor Mark Swanson.
Arkami this year raised more than $403,000 from nearly 3,400 backers on Kickstarter, about 270% more than its goal.
Chris Casacchia can be reached at casacchia@ocbj.com.
