Investors educated by software firm’s steep learning curve

EDUCATIONAL software company Riverdeep has certainly provided a steep learning curve to investors in the company which was once valued at close to €2bn.

A management buyout (MBO) scheme places a €353.1m value on the company founded by former teacher Pat McDonagh who is putting his 20.86% holding in the company behind the MBO led by chief executive Barry O’Callaghan, with 5.06% of the shares.

When Riverdeep, founded in 1995, floated on the Nasdaq in March of 2000 at the height of the dot.com boom, Mr McDonagh’s 53% holding in the company almost made him a billionaire on paper at least with his stake valued at $951 million.