Milestone Systems Admits IPO Plan LieBy: John Honovich, Published on Feb 27, 2015
To IPVM in 2014, Milestone said, "There are no plans for this right now" and "We continually assess our options for the future of the business."
At the company's 2014 event, they made a big show of not planning an IPO, declaring:
“We’re not preparing for an IPO this week, in two weeks or two months. An IPO is not on our plate at this time.”
"Milestone CEO Lars Thinggaard said going public is something Milestone may do and it “will be great if it ever happens,” but that the company “had not decided to do that.”
Now at the 2015 event, Milestone came clean:
"Although [Milestone's CEO] couldn’t share insights about the initial public offering (IPO) that Milestone had been planning prior to Canon’s purchase of the company last year, Thinggaard on Tuesday did discuss their thought process and how they arrived at the decision that partnering with Canon would result in a better outcome than going public."
Milestone CEO's excuse:
“There is a lot of legal confidentiality to these processes as you know, so I could not go out and confirm anything.”
No Comment Instead of Deception
So instead of simply saying 'No comment' or 'We don't comment on rumors', etc., he decided to manipulate and deceive.
That was Milestone's choice. They could have went the 'no comment' route, which would have been truthful, but they saw the short-term business benefit of deceiving their partners, customers, and the community.
Be Skeptical About Canon 'Independence'
Now, Milestone wants you to believe them about the next critical company issue - remaining 'independent'.
Indeed, at the company's 2015 event, they continued to hammer home that Milestone will be independent, despite being wholly owned by Canon and despite Canon's 'plan' to acquire Axis.
When the day comes that Canon, as 100% owner, decides to cross-sell / combine Axis and Milestone (which Canon would have to be incompetent not to eventually do), surely Milestone's CEO will have another excuse or perhaps will be retired, enjoying the good life, leaving that to a new person to spin.