Code42 won't be making a much-anticipated move to Uptown, leaving a yet-to-be-built office complex called MoZaic East in limbo.
The tech company, now headquartered on the north side of the Mississippi across from downtown Minneapolis, notified developer Ackerberg Group recently that it couldn't proceed with its previous plan to move to the new, eight-story building in 2016.
"Code42 can't move forward with the building we had designed at this point," JoAnna Hicks, senior managing director at Minneapolis-based Ackerberg, said Monday. "I'm always hopeful that we will be able to work something in the future."
The news comes less than a month after the city of Minneapolis approved a jobs-subsidy package for the fast-growing software firm that was tied to its expansion. The incentives were based on the company's promise to add 400 jobs to its 350-employee base.
Code42 did not respond to calls for comment.
The news raised speculation that the closely held company, one of the most successful in the Twin Cities tech start-up scene over the past decade, is in play. Code42, which had about $40 million in revenue last year, is best known for a data backup product called CrashPlan.
In addition to sale speculation, which has risen previously for Code42, the company may have backed away from the deal if its space requirements changed, the timing of the project didn't align with the firm or a business issue became a bigger priority for its leaders, said Paul DeBettignies, a Minneapolis-based headhunter for tech companies.
"Why would they go through all this work and then back out? That seems silly," DeBettignies said. "They are way past the implosion part. Almost nothing at this point would tank them outside of the catastrophic."