Quirky, Wink File Chapter 11; Flextronics Makes $15M Opening Bid for Home Automation Biz
The once-promising home automation company Wink, launched by GE-backed Quirky, has filed Chapter 11 bankruptcy and is up for sale; Flextronics is the first bidder.
Flextronics International, an electronics OEM giant, has placed the first bid for Wink ($15M for certain assets). The Wink board hopes to close the acquisition process within 60 days.
CE Pro will have more insights into the news, but for now, here is the brief announcement from Quirky and Wink:
Today, Quirky, the parent company of Wink, and Wink filed a voluntary petition for Chapter 11 reorganization under the Bankruptcy Code. This decision was mutually agreed upon by the board and Quirky’s leadership. The filing provides a court-supervised process through which Quirky will restructure and reduce its debts. Information on the filing can be found here.
As part of this filing, Quirky has entered into a purchase agreement to sell Wink. The sale of Wink will ensure a strong backing for the business to continue our mission.
Flextronics International USA Inc. has submitted a stalking horse bid, which sets the minimum amount at which Wink will be acquired. Additional parties have the opportunity to submit bids of their own, in which case the final acquisition amount will increase. If other bids are not accepted, Wink will likely be acquired by Flextronics. We are hopeful that the process will be complete in 60 days.
This does not impact the Wink experience for our users nor how Wink operates day-to-day. Our engineers and designers will continue to enhance our platform to provide new, meaningful ways for you to interact with your smart home. The Wink HUB and Wink Relay will continue to be available at The Home Depot and Amazon. Our customer support team will continue to provide the same quality assistance we pride ourselves on.
Wink will continue to be Wink.
More from Quirky and Wink:
Quirky, Inc. (“Quirky”) and its affiliates (together, the “Company”) announced today that it filed a voluntarily petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.
The Company has taken this action to facilitate a sale of substantially all of its assets. After carefully examining the various alternatives available, the Company concluded that Chapter 11 provides the most effective and efficient process to facilitate sales of substantially all of its assets and provide potential suitors with certain advantages only available in Chapter 11, which will enhance the value of the Company’s assets.
With respect to assets related to the business of Wink, Inc., the Company has entered into an agreement with Flextronics International USA Inc. for the sale of certain assets at a purchase price of $15 million. The sale will be subject to higher or otherwise better offers. The Company will look to conduct an auction, if other bids are received, and will be seeking court approval to have the sale close within approximately 60 days. The bankruptcy filing does not impact the Wink experience for users nor how Wink operates day-to-day. Wink’s engineers and designers will continue to enhance the Wink platform to provide new, meaningful ways for customers to interact with their smart home. The Wink HUB and Wink Relay will continue to be available at The Home Depot and Amazon. Wink’s customer support team will continue to provide the same quality assistance.
With respect to Quirky, the Company is working with potentially interested parties to establish a stalking horse bidder for certain of its assets, including assets related to the Quirky online community and the Quirky name. Such a sale would be subject to higher or otherwise better offers. The Company will look to conduct an auction, if bids are received, and will be seeking court approval to have the sale close within approximately 60 days. While the Company was previously forced to temporarily suspend Quirky product evaluation and development projects, it is hopeful that the ultimate successful purchaser will restart those operations and reestablish a meaningful and productive relationship with the community members.
The Company has engaged Cooley LLP and Klestadt Winters Jureller Southard & Stevens, LLP as counsel, FTI Consulting as its restructuring advisors, Centerview Partners LLC as investment banker with respect to the Wink assets, and Hilco Streambank as investment banker with respect to the Quirky assets.
Established in June 2009, Quirky, Inc. offers its inventors a forum for social product development and its customers an opportunity to acquire the most innovative products on the market. The Company currently operates Powered by Quirky and Wink business units and maintains a website at http://www.quirky.com.
Parties may obtain additional information by visiting the website of the Company’s claims agent, at http://quirkybankruptcy.com/
Secure Your Free Pass to CEDIA EXPO 2019
Register before Sept. 2 to gain free access to the opening keynote, product training & education series as well as the show floor including Innovation Alley and much more. Don’t miss your chance. Sign up today.
Julie Jacobson is founding editor of CE Pro, the leading media brand for the home-technology channel. She has covered the smart-home industry since 1994, long before there was much of an Internet, let alone an Internet of things. Currently she studies, speaks, writes and rabble-rouses in the areas of home automation, security, networked A/V, wellness-related technology, biophilic design, and the business of home technology. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, and earned an MBA from the University of Texas at Austin. She is a recipient of the annual CTA TechHome Leadership Award, and a CEDIA Fellows honoree. A washed-up Ultimate Frisbee player, Julie currently resides in San Antonio, Texas and sometimes St. Paul, Minn. Follow on Twitter: @juliejacobson Email Julie at firstname.lastname@example.org
NewsCEDIA Find: Cellgate’s Cell-Based Access Control with Streaming Video; Control4 Integration
People & Places: Ui Supplies Event; Azione Canadian Dealers; Atlona, ETA; Environmental Lights
Product Briefs: Metra at Nationwide; Kenny Wayne Shepard, Dolby Atmos; EPV Partners with D&H
Escape CEDIA Expo! First-Ever Delos Wellness Pavilion Offers Biophilic Refuge
Tiny Soundbar Solution Solves Tricky Audio Project
View more News