Sacked Infogroup founder Vinod Gupta has formed Database101 - a new company already boasting a team of twenty-two, including seven of his former colleagues.
The Board of database giant and ORC-owner Infogroup sacked Gupta from his Chairman's role in 2008, following an investigation which found him guilty of misspending millions of company dollars on private yachts, apartments, and use of the firm's jet plane to fly Bill and Hillary Clinton to political events.
As a result of the investigation, Gupta agreed to pay back $9m over a five-year period, which was comfortably offset by the $10m he received as part of his severance payment.
According to a report in the Omaha World-Herald, Gupta's new firm Database101 will research and compile business contacts, segmented according to demographics such as age, income and location. His firm will also mine online public databases for information. Gupta claims the new firm will not compete directly with his former company.
Gupta's hires for the new company already include former Infogroup colleagues Monica Messer, Fred Vakili, John Ferris, Scott Thompson, Ron Hanzlicek, Dan Cyza and Angel Bechtold.
The firm launches less than five months after Infogroup, which Gupta founded in 1972, was sold to New York equity firm CCMP Capital Advisors, LLC for a total of around $635m. Gupta, who at the time held around 14.8 million shares, made about $101m from the deal.
Web site: www.database101.com .
All articles 2006-20 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.