Encore Computer Corp, the now defunct minimaker and storage systems company, has finally closed the sale of its real-time computer systems and processing business to a newly formed subsidiary of Connection Machines Inc, one of the Gores Technology Group of companies, for $3m in cash. The parties agreed to off-set $250,000 against the purchase price in order to resolve an alleged breach of indemnity claim, and also agreed to settle other open or disputed items in connection with the sale, including amounts due to Encore under the management agreement and revolving loan agreement between the parties. Encore originally signed a letter of intent with Gores to sell off its last remaining business for a meager $5.5m (CI No 3,373), but that amount appears to have been reduced further following due diligence. Encore, which was heavily in debt, sold off its storage division to Sun Microsystems Inc in 1997 in a deal worth $185m. Los Angeles-based Gores is a twenty-year-old high technology business management organization that has acquired such companies as project management firm Artemis Management Systems (CI No 3,111), document management company Information Dimensions Inc (CI No 3,209), manufacturing software house Computer Design Inc, and product data management firm Applicon Holdings Inc over the last few years. Affiliate Gores companies represent consolidated revenues of nearly $100m, and an annual growth over 35%. There’s nothing left of Encore now, and this is the last we are likely to hear of it.
