Sale Speculation Surrounds Scentric

Data classification startup Scentric may be on the block.

Rumor has it the vendor is up for sale, supposedly after a failed attempt to raise cash. Scentric SVP of marketing Larry Cormier denies the firm has failed in funding, but he confirms that Scentric has been approached by "several interested parties."

A potential sale would confirm the trend toward ongoing consolidation in the data classification space. The segment's still new and in flux, as larger vendors seek to combine classification functions with other capabilities, like archiving, search, and e-discovery. (See Classification & Search Converge and Classifiers Grab Search Partners.)

Scentric competes with a long list of players, including Abrevity, Index Engines, Kazeon, Njini, and StoredIQ. Its out-of-band software solution comes with suites tailored to specific vertical markets. (See Scentric Rolls Out Suites and Scentric Launches Tool.) It has integral search capabilities, even though Scentric has joined Google's enterprise search appliance partnership program, and reportedly planned other search alliances. (See Kazeon Gets $21M Venture Boost, The Ongoing Search, and Content Classifiers Glom Onto Google.)

Scentric also has partnerships with Archivas, EMC, HDS, NetApp, and Permabit. Another ally, Acopia, is enthusiastic. "If they are being bought, I hope it's by someone who'll advance the technology. They have good stuff. We're big fans, and I absolutely think classification is the next big issue for file management," says Kirby Wadsworth, SVP of marketing and business development at Acopia.Scentric's partnership list offers intriguing fodder for acquisition speculation. HDS, for instance, has already purchased Scentric partner Archivas. (See Hitachi Pockets Archivas.) Then again, there's EMC and NetApp to consider as well.

Scentric, which claimed to have 70 employees in August 2006, now has about 31, according to Cormier. The company has raised about $17 million from investors that include HIG Ventures, the Advanced Technology Development Center Seed Fund of Georgia Tech University, Imlay Investments, and Valhalla Partners.

Scentric, formerly cagey about revealing customer names or counts, says it has about eight customer now, with several more kicking the tires.

Scentric also lost its CEO earlier this year and has not replaced him. Jeff Hornung left the company in April after just seven months on the job. (See Scentric Appoints CEO.) The man he replaced, co-founder Sanjay Sehgal, continues as chairman of Scentric's board.

Scentric's Cormier had no comment on Hornung's reason for leaving, or when he might be replaced.Mary Jander, Site Editor, Byte and Switch