Tuesday, November 20, 2007

Innerwall sold to Ohio firm

Frank Ricotta had to either raise more venture capital or negotiate a sale for Innerwall Inc. to get its network security software to a wider market.
Ricotta chose the latter, agreeing to sell Innerwall in May to Dayton, Ohio-based Enterprise Information Management Inc. for an undisclosed price. Enterprise retained all 11 Innerwall employees, who now operate Enterprise’s western regional office in the Springs.
Innerwall was a subcontractor on a $49.1 million, five-year Army contract Enterprise won last year to turn more than 100,000 paper forms into Web-based documents that are digitally “signed” for supply orders, personnel, medical, transportation and other matters.
“We needed a broader platform to launch our technology and since we had worked together on the Army program, we found there were a lot synergies, including a similar customer set and technology vision,” said Ricotta, who was Innerwall’s co-founder and CEO.
Innerwall had cut its staff from 35 to 11 about a year ago, when it restructured its marketing strategy and sales team to focus on a few core clients. A few months later, Enterprise began negotiations to acquire Innerwall, said Enterprise CEO Bruce Lyman.
Innerwall was started in 2002 and was funded by $7.5 million from investors that included XAware Inc. Chairman Bill Miller, Adam Aircraft Inc. Chairman Rick Adam and Vince Cook, former vice chairman of Science Applications International Corp.
“The technology is brilliant, the team is first class and it allows us to bring a complete solution to our customers” by including Innerwall’s network security software as part of Enterprise’s document automation software sold to military and government agencies, said Enterprise CEO Bruce Lyman.
Innerwall’s software allows only “healthy” computers to be connected to corporate networks and makes sure they comply with all of an organization’s computer security policies as well as helping networks recover from breaches by restoring them quickly to their previous state.

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