WANdisco undergoes rebranding as a fresh beginning for the software company following a fraudulent incident.
- In August, the name change was approved by shareholders with a significant majority.
- Stephen Kelly, the CEO of WANdisco, stated that the transition was more than just a mere alteration in name.
- Earlier this year, trading of WANdisco shares was halted for a period of four months.
WANdisco has changed its name to Cirata in an attempt to move past a turbulent year that included a fraud investigation and the dismissal of 30% of its employees.
The company is set to commence trading on the London Stock Exchange using its new name starting from Thursday. This decision was made following a successful vote by shareholders during the annual general meeting in August.
The firm decided to use the name “Cirata” as a combination of “cirrus cloud” and “data” in order to distance itself from the accounting scandal that occurred earlier this year.
New name: WANdisco has rebranded as Cirata following a particularly tempestuous year
The provider of the software, with offices in Sheffield and California, has acknowledged going through a period of significant distress after the controversy.
Stephen Kelly, the CEO of WANdisco, stated that the rebranding is not merely a change in name, but rather a fresh beginning for the company that will have a positive influence on every aspect of our business.
He stated that they are thrilled about the chance for Cirata to establish itself as a leader in the global market.
WANdisco shares were halted from trading on the junior AIM market in early March due to the discovery of substantial, advanced, and potentially deceptive irregularities in the company’s financial records for 2022.
A thorough investigation revealed that one senior staff member was accountable for exaggerating revenues and recording £88 million of fraudulent sales bookings. The Financial Conduct Authority initiated another inquiry in response.
WANdisco’s actual turnover last year was £7.4 million, not the incorrectly published £18 million. Similarly, its bookings amounted to only £8.7 million instead of the reported £97 million.
Around 30 percent of its workforce were laid off as a result of the saga, which also saw the departure of finance executive Erik Miller and co-founder and CEO David Richards. This situation left the company in a desperate struggle to stay afloat.
During the summer, the group obtained a significant financial boost by raising £24.3 million from investors through a share placing.
On 26 July, WANdisco shares resumed trading after suspension, with a significant 96 percent reduction in their final share price.
They were 1.3 per cent higher at 63.8p on Wednesday morning, having been £13.10 when they were suspended seven months ago.
WANdisco creates software that allows businesses to transfer large-scale datasets to the cloud for use in fields such as machine learning and artificial intelligence.
Some of its largest clients include carmakers General Motors and Mercedes-Benz Group, technology giants Google and Amazon, and web hosting platform GoDaddy.
Right before the occurrence of the accounting scandal, this company was experiencing rapid growth in the UK and contemplating a potential listing in New York.
