I Know Who Bought Think3

For a long time now I have been trying to find the answer to the question “Who Bought Think3?” Actually someone told me the answer a while ago but wasn’t ready to go on record. Today one of my readers pointed me to this page which states that Think3 Inc. had filed for Chapter 11 on 18th May at the US Bankruptcy Court for the Western District of Texas. The page mentions that Think3 Inc. was acquired by ESW Capital LLC in September 2010 in a stock purchase transaction.

On 23rd November 2010 I wrote:

A Google search for ESW Capital led me to this public document at the US Securities and Exchange Commission which shows that Manager of ESW Capital LLC, Assistant Secretary of Versata Enterprises and President and CEO of Trilogy are one and the same person. Interestingly the “About Versata” section of the Think3 press releases starts with: “Founded in 1989, Trilogy established Trilogy Technology Group, a forerunner to Versata Enterprises, in 2004.” So it appears that ESW Capital, Versata Enterprises and Trilogy are all related to each other in some way.

So this means ESW Capital bought the dying Think3 in a stock purchase and Versata bought Think3′s IP supposedly for millions of Euros. You don’t need to be a rocket scientist to figure out what’s going on here. Without its IP Think3 Inc. obviously could not survive and has gone bankrupt. Most of its employees were laid off long ago. Meanwhile Versata has taken the IP and is asking Think3 customers to pay for support.

I doubt Think3′s creditors got to see any of those millions because on 14th March 2011 they initiated insolvency proceedings against Think3 Inc. and its Italian subsidiary in Bologna, Italy. The judge figured out what was going on and appointed a trustee who seized control of the assets of Think3 Inc. and its Italian subsidiary.

One of the assets was the Think3 web site www.think3.com which is now controlled by the court appointed trustee. Versata made a copy of the web site and started hosting it at think3.versata.com and then took it down after realizing that it was doing something wrong. That was weeks ago. For all the development resources that it boasts of having, Versata has still not been able to cook up a decent looking web site for Think3. That says a lot to me.

  • Sid

    @DeelipMenezes:twitter , One correction – think3′s employees were never laid off after the acquisition. They simply ignored their existence!

  • http://www.deelip.com Deelip Menezes

    You mean they never got pink slips at all.

  • Sid

    No pink slips! No salary dues and No compensation. To ask somebody to go, they have to pay dues and compensation. It was easier to simply ignore them and they knew eventually the employees would move on.

  • http://www.deelip.com Deelip Menezes

    That’s weird. So you mean that they are technically still employees of Think3?

  • Sid

    Most of them resigned (as and when they found jobs) and moved on. Some are still technically employees.

  • Naveen

    With Bankruptcy filed both in Italy and US… what is gonna happen? Can versata fight in US>

  • R. Paul Waddington

    “The page mentions that Think3 Inc. was acquired by ESW Capital LLC in September 2011 in a stock purchase transaction.”

    “September 2011 ” now we know why Deelip is Deelip – he sees into the future!

  • R. Paul Waddington

    “The page mentions that Think3 Inc. was acquired by ESW Capital LLC in September 2011 in a stock purchase transaction.”

    “September 2011 ” now we know why Deelip is Deelip – he sees into the future!

  • JhonJhon

    I can confirm!

  • JhonJhon

    In my opinion now Versata is with the water in the throat for this situation. They are trying to rebuild trust with customer, but now the situation is quite clear. How many customer will believe in Versata? Ok, they can fight ….. but the market will take away thei hope in this bussiness, I’ m pretty sure.

  • Nainar

    I would think so as well. Apparently, they have appointed a Chief Restructuring Officer to restructure a company that is bankrupt. And this company has no staff in the US, but only subsidiaries.And Versata FZ LLC has filed a law suit against Think3 Inc, which its affiliate company ESW Capital acquired. Quiet obvious, but the fight is across continents now.

  • JhonJhon

    They will not have chances. All things the code, the IP, the R&D, was in bologna. In the US in the last 7/8 years ….. nothings.

  • Nainar

    Came across this article!! Now that Think3 Inc has filed for Chapter11, the details available in public domain I guess. Versata FZ LLC has paid $3million for licensing Think3 products.

    http://www.businessweek.com/news/2011-05-26/tribune-a-p-viceroy-nec-tousa-pj-finance-bankruptcy.html

    A $3 million price tag for the IP of a  product that made more than $20 million…

  • Token

    Does anyone know that there is another independent IP in Think3 China,  a subsidiary in China ?

  • Pingback: The Violation Of Think3 | Deelip.com

  • Shashi

    Adding more to Sid’s comments: No pink slip, No salary dues, No compensation nothing, most of the people worked more than 5 years including me and company didn’t even pay us the Gratuity for serving 5 years……..

  • Kiran Kumar

    think3 was bought for $1 m which has debt of min $25 m and sold IP for $3m? isnt that fishy?….
    Verstata bought 20 such companies and adopting similar strategy… what is the CEO of then think3 doing… didnt he analyze the history of versata… where was he sleeping when the company is going for a $25m dept… such a huge debt accumulated overnight? could he also be the partner of crime?




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