This super 40-employee startup to acquire a 1,100-employee company
Bengaluru | Red Newswire | May 16 4:40 PM IST.
Usually it is the older and bigger companies that acquire startups to give them a lift and innovate, the other way round hasn’t been seen yet. However, there is one startup that has broken the trend.
The CEO of Bowers & Wilkins, Joe Atkins had a majority stake in the British speaker business since 30 years. This week, he announced that he is selling his 1,100 employees strong company to a comparatively small startup owned by a man he met a month ago. None of the employees had heard of this tiny startup – Eva Automation.
Atkins signed an agreement with the Silicon Valley startup which has only 40 employees. What’s more surprising is that this startup hasn’t sold any service or product yet!
Gideon Yu, Facebook’s former CFO, ex-venture capitalist and co-founder of San Francisco 49ers founded this company in 2014. As the company’s website says, the startup is involved with “making products that will change how people interact and think about the home.” Out of its 40 employees, few are ex-Apple employees.
Both the companies refused to disclose the details of the deal. However, Eva Automation is looking to raise funds as high as $252 million. This funding if raised, could value Eva at $600 million as per analysis by VC Experts. Eva already has raised funds worth $20 million and with this additional new funding it will acquire Bowers & Wilkins.
Bowers & Wilkins sells speakers especially designed for people who prefer listening music through their phones. Atkins said that the company does not has the expertise required to build cloud-based software. For building premium speakers, they require to integrate high-end hardware and software. Yu said that the startup will start selling products by 2017.
Atkins will serve as the CEO of the newly formed company, whereas Yu will be the executive chairman. The name of the company might also change. Yu said that this deal will serve as a model for other startups. He said, “I think there will be others to follow. This is the way that Silicon Valley and other industrial companies raise the game for consumer-brand electronics.”
The original story was published here.