Daegis is moving HQ from Roseville to Dallas

Published: Wednesday, Jun. 26, 2013 - 12:00 am | Page 6B
Last Modified: Thursday, Jun. 27, 2013 - 8:41 am

Texas is picking up another Sacramento-area business.

Daegis Inc., the Roseville-based electronic discovery and information-management firm, disclosed Tuesday in its quarterly financial report that it will relocate its headquarters to Dallas.

Tim Bacci, CEO of Daegis, said in the report: "As we evaluate the business and optimize our cost structure to accelerate on strategies where we see the most opportunity, we have decided to open an office in Dallas, Texas, and relocate the company's headquarters there.

"Texas is a strong territory for our businesses, and we view this move as an opportunity to increase the company's operational efficiencies and access an additional talent pool, as needed."

While the area will lose a headquarters, the net job loss is expected to be small.

Company spokeswoman Deborah Thornton said Daegis employs 163 in multiple offices in the United States and internationally. Its Roseville site at 1420 Rocky Ridge Drive employs 32, and Thornton said the company will maintain a Roseville office of 26 to 28 specialists.

Thornton said the executive team and senior management will move to the new headquarters, but she did not have an exact count. The company plans to have its Dallas headquarters operational by Sept. 1 and complete the move by the end of the year.

The company, long known as Unify Corp., renamed itself Daegis in July 2011, one year after it spent $38 million to buy San Francisco software maker Daegis.

Unify started in 1980 as a software development company and went public in 1996.

In January this year, Daegis announced that Todd Wille would step down as company president, CEO and board member "to pursue new leadership opportunities." At the same time, Daegis announced the imminent departure of its chief financial officer.

Daegis' upcoming move is the latest chapter in a Texas-California business tug of war that has periodically surfaced the past few years.

Earlier this year, Texas Gov. Rick Perry drew national attention with his efforts to lure California-based businesses to Texas, touting the Lone Star State's business-friendly climate.

Perry, who also made a business-recruiting trip to California, has repeatedly pushed claims that California's regulatory environment makes it more difficult for businesses to operate.

That view was shared by Ron Mittelstaedt, chairman and CEO of Folsom-based Waste Connections Inc., who said in late August 2011 that California was "the worst state in the country to do business in."

Before 2011 ended, Waste Connections announced that it was moving its headquarters to the Woodlands, Texas, outside Houston.

At that time, WCI was the Sacramento region's largest publicly traded company, generating revenue of more than $1 billion a year.

On Tuesday, Thornton said Daegis' move is "about accessing an additional talent pool for our businesses; that's the primary reason. And we're a bicoastal company, so it's better for us to have a central location."

In its financial report, Daegis said it had a profit of $188,000, a penny a share, for its fourth quarter ended April 30 – a sharp turnaround from a loss of $15.7 million, $1.08 a share, in the year-ago period.

For its full year, the company had net income of $532,000, a penny a share, compared with a loss of $16.7 million, $1.16 a share, the prior year.

Electronic discovery generally refers to discovery in civil litigation in connection with exchanging information in an electronic format.

Call The Bee's Mark Glover, (916) 321-1184.

© Copyright The Sacramento Bee. All rights reserved.

Read more articles by Mark Glover



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