Envistacom's remaining assets go to auction

Just three months after former CEO, Alan Carson, and two of his colleagues were convicted of conspiring to defraud the government, Envisacom’s assets have hit the auction block. It is the end of a bizarre saga surrounding the once-successful satellite communications and cybersecurity company. After nearly 10 years of extraordinary growth, in 2022, the Procurement Collusion Strike Force discovered that Envistacom had been submitting false quotes and independent estimates to artificially increase their costs.

The incidents in question happened between 2014 and 2016, when Envistacom saw a rapid rise in government obligations from around $10M in 2014 to nearly $50M in 2016, though the government only claimed around $8M of those awards were fraudulent. Regardless of the total dollar figure, the convictions were enough to cripple the company, and Envistacom filed for bankruptcy shortly after the jury’s decision. Key remaining creditors that will be awaiting the results of the auction are Kratos Antenna Solutions Corporation, Mag Aerospace, Linchpin Solutions, and LNO Inc., and Gulf Project Solutions General Trading & Contracting Co. W.L.

As for who is looking to purchase the assets, unlike the high-profile Virgin Orbit bankruptcy, there does not appear to be any “white knight” swooping in to take the bulk of what remains. Given the brand damage of being associated with government fraud, it seems most potential suitors are unsurprisingly electing to stay away. Certainly, there are a few local Atlanta-based space companies and defense firms that may be interested in shop machines and electronics equipment – such as Hermeus, SpaceWorks, Viasat, Datapath, or Georgia Tech – but the retention of traditional equipment auction house, Bullseye, suggests little interest beyond that. Perhaps more juicy assets will be available in the second round of the auction (date TBD).

SOURCE: https://www.bullseyeauctions.com/auctions/detail/bw97468