Openet acquires software company

OPENET Telecom has snapped up Dublin-based software firm Sepro for an undisclosed sum, it was announced yesterday.

Openet said last night that it would acquire all of Sepro’s technology, intellectual property rights and customer contracts. A number of Sepro staff will also transfer to Openet Although the company's did not disclose the price, one analyst said it was likely to be around 10m.

John Rainger, chief executive of Openet said in a statement: “We grew our revenue 76% in our last fiscal year, and this acquisition will allow us to fuel our revenue growth still further. We have achieved this at a price point and in a timescale that we could not have matched through internal development.” According to recently filed accounts, Openet’s revenues fell from 8.9m in June 2001 to 5.4m the following year with losses increasing to 12.5m. Late last year Openet laid off some of its 100 employees.

The company’s shareholders include Benchmark Capital, which is run by former Esat Digifone boss Barry Maloney, who is also a private investor in Sepro.

Openet has raised almost $40m 36 million in funding since 1999, the bulk of which came from Benchmark Capital.

Earlier this year, Sepro raised 3m from its existing shareholders, which include AIB and Trinity Venture Capital. The company is believed to have made a loss in its last financial year. Since it was set up in 1997, it raised 14m in funding