Software firm founder set to net €43m from sale

THE founder of a Dublin-based software company could make up to €43 million from the sale of his firm.

James Callan, the 42-year-old chairman of Eontec, is believed to own around 40% of the company, which was sold to American firm Siebel Systems yesterday for €109m.

Eontec, which was set up by Mr Callan a decade ago, develops software for banks and other financial institutions. He remains the largest individual shareholder.

The Irish Examiner revealed in January that Eontec was hit with heavy losses in the past few years. According to company accounts, it had retained losses of €34m at the end of 2002 and continued to lose money last year.

Siebel Systems says it will pay the shareholders of the private company an initial €58.8m in cash and up to €50.4m if certain financial targets are met.

This means Mr Callan stands to make €24m and a further €10m next year if the sales targets are met. It was not disclosed when the remaining payments will be made.

The takeover will also net millions for Eontec's chief executive Patrick Brazel, who has a sizeable stake in the company. Colin Piper, who heads Eontec's US business, will also get a huge payout. He owned 8% of the company, worth €8.7m.

The sale will also see windfalls for the 192 workers at Eontec. The employees hold a 3% stake in the company, which gives an average payout of €17,000 each.

A spokesperson for the company was unavailable for further comment yesterday.

The other large shareholder in Eontec is investment bank Warburg Pincus, which pumped €25m into the company in 2001.

Other shareholders include ICC Venture Capital, the former State company now owned by Bank of Scotland, and ex-Esat boss Denis O'Brien. It is not known how much he will pocket from the deal.

It is not known whether there will be any job losses at Eontec after the takeover, or from Siebel Systems' existing businesses in Ireland.