IT Staffing Report: May 14, 2015

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First Tek buys IT staffing firm for $7.55 million in bankruptcy auction

First Tek Inc. acquired the assets of IT staffing provider Cloudeeva in a bankruptcy auction on April 7 for a winning bid of $7.55 million, according to court records. There were 29 bidders for the company which posted 2013 revenue of approximately $35 million.

Cloudeeva filed for Chapter 11 bankruptcy protection in July 2014; it had more than 300 W-2 employees and some independent contractors, according to court records.

Cloudeeva at one time traded on OTC Link under the symbol SYAI, but the US Securities and Exchange Commission suspended and then later revoked Cloudeeva’s shares in July 2014. The company had not filed either an annual or quarterly report since 2006, according to the SEC’s order.

Court filings in the bankruptcy case say feuding between shareholders Adesh Tyagi and Bartronics Asia PTE Ltd. led to a number of challenges which affected the business’ profitability. “Each shareholder accused the other of wrongful conduct,” according to court records. “Contentious and costly litigation ensued. The ongoing shareholder dispute and litigation had a severe adverse impact on the debtor’s business.”