€30m boost for Conduit’s Irish pair

EDDIE Kerr and Liam Young, the founders of Dublin directory inquiries company Conduit, have made almost €30 million from the sale of their investment stakes in the business they founded 10 years ago.

Conduit, the directory inquiries group, has been bought for €90m by a US directory inquiries group and a South African-based investment fund.

Conduit operates 11850 inquiries service in Ireland and carries out call-centre work for companies such as Vodafone in Britain and Aer Lingus.

As a result of the deal, chief executive, Liam Young, who is staying on with the new owners, is in line for a €17.1m windfall for his 19% stake.

The other major beneficiary from the deal is Conduit’s former chairman Eddie Kerr, who will be paid €12.6m for his 14% holding.

Conduit has been bought by the investment division of the Bahraini bank, Investcorp SA and inquiries group InfoNXX. Investcorp was previously an investor in Spectel phone-conferencing business.

Conduit was valued at just €15m in March 2004. At the time Bank of Scotland (Ireland) rescued the company from heavy losses.

As a result of the cash injection the bank held 25% of the group prior to the sale while private clients of the bank held a further 25% of the equity.

An Anglo Irish Bank investment fund and businessman Pat McDonagh, who founded educational software group Riverdeep, will also do well out of the sale.

Mr Young and other members of Conduit management will continue to work for the group’s new owners.

Conduit hit difficulties following its flotation in Germany at the height of the technology bubble in 2000.

Conduit was established 10 years ago by Mr Kerr and Mr Young as deregulation opened up the European directory inquiries market.

Having set up a strong Irish base, Conduit set up operations across Europe, offering inquiry services in Austria, Switzerland and Spain. When it floated on the German Neuer market the group was valued at €280m.