Software vendor SCO has been one of the most polarizing names in the industry, following years of litigation with IBM and Novel in which it claimed to own copyright to the Unix trademark, and that source code it owned had found its way into the Linux open source operating system. Last August, Novell prevailed in the legal battle with SCO, and a month later SCO entered Chapter 11 bankruptcy.
Now, SCO seems to have found an angel in the form of Stephen Morris Capital Partners (SNCP), which had agreed to provide $100 million to reorganize SCO and bring it out of bankruptcy. As a result, SNCP will own a controlling interest in SCO. According to SCI, SNCP’s business plan includes unveiling new SCO product lines, as well as continued pursuit of the company’s legal claims.
“Not only will this deal position us to emerge from Chapter 11, but it also marks an exciting future for our business,” said SCO President and COO Jeff Hunsaker, in a statement. “This significant financial backing is positive news for SCO’s customers, partners, and resellers who continue to request upgrades and rely upon SCO’s Unix services to drive their business forward.”
Reports in the press and from sources familiar with documents related to the deal say that, if the deal should go through, a memorandum of understanding between the two companies will require the resignation of SCO CEO Darl McBride, to be replaced by an executive appointed by the board from outside the company with significant “industry experience.”
SNCP’s buyout is partially supported by “partners from the Middle East;” Stephen Norris has previously handled high-dollar buys on behalf of a prominent Middle Eastern investor. SCO’s board has unanimously approved the buyout plan, but the transaction must be approved by the bankruptcy court.
