Division: Phoenix Capital Resources, Phoenix Management Services


USDATA was a $20 million publicly traded software technology and integration services firm based in Dallas, TX.


Four consecutive years of losses, and a declining liquidity position led the Board of Directors and certain shareholders to the conclusion that a third party turnaround manager was required.


Phoenix Management Services was engaged as interim CEO. Phoenix implemented a reduction in force, recapitalized the business with $3 million in new financing, and refocused USDATA’s efforts on profitable business units. Furthermore, Phoenix facilitated the creation of a new value-added product line that commanded higher margins. USDATA’s return to profitability, coupled with the development of new products and services, positioned the company for a sale at a premium price to an industry participant. Phoenix led the negotiations throughout the sale process, which generated total value in excess of $18.0 million. Phoenix continued to serve as interim CEO throughout the transition process after the completion of the sale transaction.