Untangle buys eSoft, moves it to Westminster

WESTMINSTER – Broomfield-based eSoft Inc., a computer security software and server company, was acquired by a similar type company and moved to Westminster.

Untangle Inc. in Sunnyvale, California acquired eSoft for an undisclosed amount.

Nine people in sales, technical support and operations stayed on with eSoft, while four left the company, said Bud Michael, whose new title is executive vice president of Untangle. Michael formerly was eSoft’s president and chief executive.

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ESoft moved to 1490 South 121st St., Suite 205, Thursday, Dec. 5, in connection with the deal, Michael said.

Untangle bought eSoft Inc.’s assets to expand its reach in the small-business market, said Amy Abatangle, vice president sales and marketing at Untangle. ESoft’s products and its website will continue on – branded with the “eSoft, an Untangle company” tagline, she said. ESoft customers will continue to be supported through the Westminster office.

Untangle and eSoft provide similar types of functions – network security and Internet management for businesses and schools. In eSoft’s case, company software is loaded onto its hardware servers, which are sold to customers for prices ranging from $2,000 to several thousand dollars annually, Michael said. Untangle’s “lite” software package can be downloaded from the Internet for free; the company charges monthly pricing that ranges around $40 to $50 for its premium software packages.
Untangle’s biggest customers are education-related – from K-12 schools through campuses with 3,000-plus computer users, Abatangle said. Untangle software protects about 2 million computers around the globe, according to a company press release.

ESoft was founded in 1984 by Philip Becker. In 2010, the company spun off its Web database security protection assets for an undisclosed cash amount. The eSoft board and shareholders took the assets of the Web database security protection business, named the company zvelo Inc., and moved the headquarters to Greenwood Village.