Comnitel merges with Watchmark

TECHNOLOGY firm Comnitel has merged with US software company WatchMark.

A statement from Comnitel yesterday said that it had merged with WatchMark, which develops software applications for the likes of T-Mobile, Lucent and Ericsson.

The Irish Examiner reported on Monday that Comnitel hads made significant losses since its was set up in 1999 by Corkmen Declan Fox, and current chief executive Kieran Moynihan.

In 2002, the company lost nearly €8.5 million, having already lost €8 million in 2001. Its revenues were just over €35,000.

Mr Moynihan said yesterday that the merger was the ideal solution for Comnitel as the combined company would be one of the largest in its sector. He added that the new firm, called WatchMark-Comnitel, would be cash-flow positive in the next quarter.

The firm will employ over 200 people, and will have its European head office at Comnitel’s existing base at Cork Airport Business Park. But six of Comnitel’s 75 employees will go as part of the merger.

Mr Moynihan said that revenues were beginning to flow in, and that the average deal for the company would generate €1.5m to €3m in revenues. Comnitel is lining up several new US customers and it will also have access to WatchMark’s 100 clients.

Mr Moynihan will become chief technology officer at WatchMark-Comnitel, while Nic Humphries of Hg Capital, one of Comnitel’s shareholders, will join also the board of directors.

Comnitel has raised over €35 million in venture capital funding.

The new shareholder structure was not disclosed, but it is unlikely to have been a 50/50 merger given the difference in size between the two.