Software buyout lands Dublin firm up to €84m

Banking software firm Eontec Ltd has been sold in one of Ireland's largest-ever software company sales.

The Dublin company has been bought by US multinational Siebel Systems for an initial cash amount of $70m (€59.12m) followed by subsequent earnings-based payments of up to $60m (€50.68m).

If targets are realised, these payments will total $30m (€25.34m), leaving the overall value of the deal at $100m (€84m).

The company held a fourth round of financing in 2001 when several investors, including Denis O'Brien and a number of venture capitalists, put a further $25m (€21m) into the company.

They are expected to make a 50% return on this investment.

Company founder Mr James Callan owned 17.6% of the shares at the time of sale.

This would in theory earn him €14.87m on an €84m deal, although there are different classes of shares within the company and it is unclear exactly what value his stake has.

According to a report, Eontec's latest filed accounts - for the year to end December 2002 - showed a loss of $8.89m (€7.51m).

It is not known whether the company has moved into the black since then, but a spokesman said that the figures had improved.

Eontec has offices in 10 countries apart from Ireland and employs 150 people.

This deal is not expected to result in any reduction in staff numbers.