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CÚRAM application, the Dublin company of software to assist govt groups administer social welfare and fitness features, has been got by means of IBM.
No economic particulars of the transaction had been released.
Cúram had revenues of $seventy nine.8 million (€59.2 million) in 2010, down from $91.2 million in 2009, but chief govt and co-founder John Hearne stated the business was on path to have revenues of $one hundred million in 2011.
this means the deal may also had been price at the least $150 million as trade analysts say commercial enterprise utility businesses like Cúram are being valued at 1½-2½ times their revenues.
Mr Hearne described the sale, a good way to close later this month, as a “very entertaining day for us”. He mentioned the deal would allow Cúram’s utility to be sold in one hundred seventy international locations instead of the nine during which it is presently energetic.
“We all the time ruled out an IPO as it’s now not correct for their type of company and they weren’t interested,” talked about Mr Hearne.
He said the company has had “serious pastime” from capabilities buyers in view that 2005, however changed into drawn to IBM due to its dedication to “market and use their items in a fascinating manner”.
Cúram purchasers encompass Britain’s department of work and pensions; the U.S. states of Utah, Louisiana and North Carolina; the city of ny; and 5 of the ten provinces in Canada.
All Cúram’s senior management are staying on after the sale closes, together with Mr Hearne and his co-founder Ronan Rooney, who has the function of chief know-how officer.
The acquisition is “massive news” for each IBM and Cúram, mentioned Craig Hayman, ordinary supervisor of IBM’s industry solutions group. He noted Cúram would be built-in into IBM’s “Smarter Cities” initiative, which he talked about goals to assist governments run city areas extra efficaciously and get greater outcomes for citizens.
ultimate 12 months, IBM introduced the introduction of a $sixty six million research centre for the initiative, based mostly in Dublin.
No decision has been taken as as to if or now not the Cúram company identify should be retained.
IBM became attracted through the “enjoyable features” of Cúram, which encompass its alignment with IBM’s strategy, the capabilities of its products, and the skill working on the enterprise, which Mr Hayman stated turned into “world-category”.
Backers of Cúram encompass State agency business ireland and US company fidelity Investments which invested $10 million in late 2002.
In 2000, IBM offered loans of $four.1 million to Cúram, then normal as it Design, to facilitate its entry into the USA market, but this has for the reason that been repaid.
Mr Hearne and Mr Rooney are “the new poster boys of Irish entrepreneurship”, talked about Frank Ryan, chief government of enterprise ireland, who added it turned into “an excellent day and an excellent deal”.
The deal will see IBM’s utility division expand vastly when the very nearly 300 local Cúram team of workers are brought to the 1,000 IBM group of workers already working on software right here.
Cúram made a pretax earnings of $8.2 million ultimate 12 months. The business employs seven hundred group of workers globally.
IT MEETS PUBLIC SECTOR: "A 20-12 months-old overnight SUCCESS STORY"
THE DEAL for IBM to buy the Irish software business Cúram turned into at last achieved a while after 4am the day past.
although no fee became given for the transaction it solid the notoriously media-shy Irish company into the highlight.
“That became my first and last press conference,” Cúram co-founder John Hearne quipped yesterday after facing the media in Dublin’s Merrion hotel.
Mr Hearne co-founded Cúram, which turned into initially called IT Design, in 1990 with Ronan Rooney, whom he worked with at Apple computing device.
Mr Rooney labored for 15 years at the department of Social Welfare, each as a case employee and supervisor, in addition to within the IT branch, which gave him an perception into how social capabilities organizations could improved control their enterprise.
despite the fact wary of speakme to the media, Cúram had a good reputation in the technology sector and changed into viewed as a great employer that offered enjoyable work and rewarded group of workers smartly.
the day gone by commercial enterprise eire chief executive known as Cúram a “20-year-old overnight success story”. devoid of the intervention of IBM, which obviously seems enthusiastic about the company’s knowledge, Cúram would doubtless have remained the Irish tech sector’s lowest profile success.
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