Monday, February 13, 2023

ASIC ready to dump Nuix

If Nuix runs out is cash (sic) (& it’s still just an if) it’s going to be a time bomb for clients like ASIC, ATO, FBI, CIA, DoD, NCA as they risk losing critical data

 ~Neil Chenoweth

ASIC ready to dump Nuix

Neil Chenoweth
Neil ChenowethSenior writer

Corporate regulator ASIC is expected to dump Nuix when it chooses its software partner late next month, as concerns rise over the troubled tech stock’s cash burn and a wave of client defections.

While Nuix still hopes to win the 10-year tender to provide digital forensics and eDiscovery platforms, insiders close to the process said ASIC was keen to distance itself from the company as investigations continue, and that other government departments including the Tax Office and the ACCC were likely to follow ASIC’s lead.

Nuix is burning through cash but CEO Jonathan Rubinsztein told shareholders in November latest results were “green shoots”. Jessica Hromas

Former Nuix executives expressed concern over cash levels despite a rocketing share price after a January trading update and last week’s court victory over former CEO Eddie Sheehy,which has seen Nuix’s share price jump from 70 cents to $1.52.

Nuix is under intense pressure to retain clients, with law firms Minter Ellison and Ashurst and advisory firms KordaMentha and Grant Thornton Australia all switching to competitors.

At least 14 Nuix corporate clients in Australia are now trialling eDiscovery systems provided by a major US competitor, Reveal-Brainspace, whose marketing team is run by former Nuix staff. The trials are a potential preliminary step in switching away from Nuix while hedging their exposure to the troubled tech stock.