Viral Video Distances Zenith RMM From Zenith Infotech

zenith rmm CEO Michael George

To rewind a bit, Summit Partners, a growth equity firm, acquired Zenith RMM from Zenith Infotech in September 2011. Around the same time, Zenith Infotech defaulted on a bond payment. In a video statement apparently released to partners today (Nov. 7), George said Zenith RMM first heard about Zenith Infotech’s bond default through the press. Unless otherwise indicated, all of the statements attributed to George below are from the Zenith RMM video, which sources shared with MSPmentor earlier today.

George revealed that Zenith Infotech owns 15 percent of Zenith RMM, but Zenith RMM is a completely separate company, he asserted. George asked partners to focus on the facts rather than “deal of the day” promotions from rivals. Also, George said Zenith Infotech CEO Akash Saraf remains on the Zenith RMM board “for now,” a potential clue that Zenith RMM is watching the situation closely.

Separate Companies

Throughout the video statement, George further distances Zenith RMM from Zenith Infotech, though the companies continue to partner as well.

“In spite of anything you may have read or heard, let me reaffirm, in the clearest and strongest terms possible, that Zenith Infotech and Zenith RMM are two completely separate and independent companies,” said George in the video. “Zenith Infotech has a minority interest in Zenith RMM, but has no control whatsoever over its operations or its decisions.” Later in the video, George said Zenith Infotech owns about 15 percent of Zenith RMM.

In the video and email, George mentions that Zenith RMM acquired:

Added George:

Firm Financial Ground

George also describes how Zenith RMM is backed by Summit Partners, a growth equity firm that has made more than 330 investments and raised more than $11 billion in capital over the past 30 years. Said George:

Didn’t See Bond Issue Coming

In the video, George concedes that Zenith RMM’s due diligence did not focus on Zenith Infotech’s corporate bonds at issue. “Prior to the news, we were unaware of the terms of those bonds or any approaching maturity, let alone the default,” George said. “The public announcement of this transaction has prompted Zenith Infotech bondholders to start litigation in India to, among other things, discover the terms of our deal, and to pursue Zenith Infotech’s assets.”

However, George said:

Pursuing Partner, Customer Loyalty

Looking ahead, George said, Zenith RMM will continued to “provide the highest level of support for Zenith Infotech products” regardless of Zenith Infotech’s bond issues. At the same time, Zenith RMM is pursuing partnerships with additional cloud service providers, some of whom likely compete with Zenith Infotech, MSPmentor believes.

George also cautioned partners not to shift RMM providers amid all the market chatter. “On the margin, opportunistic competitors offering the “deal of the day” may lure some partners away,” said George. “Frankly, we believe these are hasty decisions that lead to unnecessary disruptions in our partners’ businesses. We ask all partners to be patient, as the facts unfolding from these events will demonstrate that Zenith RMM should continue to be your preferred provider now and in the future.”

George noted that Zenith RMM is working on many new developments that will surface in the first half of 2012, including extended endpoint coverage for Mac OS, Linux, smart phones and tablets; extended virtualization support; and improved portal and patch management efforts. George also mentioned several NOC enhancements that are under development.