Venture capital fund lined up to sign terminals arm of UK radio firm SimocoHarry YeatesA venture capital fund is poised to sign an agreement to take on part of the business of embattled UK radio technology firm Simoco.
The terminals operation of Simoco Digital Systems (SDS), the digital arm of Simoco, is currently employing all the 76 retained staff at its Cambridge site. Its systems business has been mothballed.
"The staff we have currently retained on the terminals business would go forward into the new company under these new owners, probably involving a change of name," explained SDS' managing director Graham Matthews. When SDS entered administration at the end of February it employed 248 people.
"There are two or three other prospective purchasers of the systems side of the business, said Matthews, "the hope is that one [of them] will recruit some of those people back."
The news comes despite much greater recent interest from investors in the Derby-based analogue part of Simoco.
"From the very beginning it's been clear that there is actually much more demand for the analogue side," said Finbar O'Connell of administrators KPMG.
"The problem is to choose which purchaser is going to be best for the creditors. We're at advanced negotiations on the Simoco Digital Systems business and hopefully over the next few days I will have news as regards sales agreed and signed," said O'Connell.
The repercussions of Simoco's problems have also been felt elsewhere. Despite damage limitation discussions with KPMG, one of Simoco's manufacturing contractors, Canadian electronics firm SMTC, has been forced to close its Cork, Ireland site, with the loss of 200 jobs. It will continue to operate a facility in Donegal.