Inside the world of business

Firecomms sale a ray of hope

ON A DARK day for the Irish economy, the sale of Cork- based Firecomms to the Chinese firm ZJF Group provided a ray of hope. It is the first time a Chinese firm has acquired an Irish technology company. Firecomms is an example of the RD-driven Irish companies that we are told can build a smart economy and lift us out of recession.

While it was backed by some high-profile venture capitalists, two of its customers – Swisscom and Alps Electric – were also impressed enough to invest in the company. Firecomms has been supplying components to ZJF for over two years with the result that it opened its chequebook to acquire the whole company.

Spun out of the Tyndall National Institute in 2001, Firecomms makes components which allows low-cost plastic optical fibre cable, the kind used in artificial Christmas trees, to be used for high-speed broadband and other communications applications.

The sale price has not been revealed but it is understood to be in the order of tens of millions of euro. Firecomms had raised over €15 million in venture capital financing in its nine years. Yesterday major shareholder Atlantic Bridge expressed its pleasure at the deal.

A number of bodies from IDA Ireland to the Innovation Taskforce have stated the need for Ireland to attract more investment from the emerging BRIC economies of Brazil, Russia, India and China. That Firecomms will now become the RD arm of ZJF suggests that strategy might have some legs. While it is a timely boost for the State’s strategy, on a more pragmatic level Enterprise Ireland will see a decent return on its investment in Firecomms at a time when the agency’s budgets will be under scrutiny.

Drumm getting some attention on Cape Cod 

THE LOCAL media in Cape Cod in the US have started to report on the David Drumm case, while a Facebook site has even been established to get him “out of Cape Cod”.

Capecodonline.com has run a piece about the former Anglo Irish Bank chief under the headline: Banker no longer living the quiet life.

Reporter Sarah Shemkus wrote that Drumm’s presence on Cape Cod had, until recently, gone largely unnoticed.

“At Chatham stores and restaurants this week, locals said they had no idea a figure of international interest was living in town,” she wrote.

Drumm has even come to the attention of local police after they responded to a complaint that there was an unwanted reporter on the lawn of his Stage Neck Road home.

Following the incident, copies of a news article about Drumm were left in the station’s roll call room to raise the staff’s awareness, according to the reporter.

The Facebook site, which contains factually inaccurate information about the former banker, includes a link to YouTube and a clip from an episode of the Late Late Show, where a number of panellists discussed the collapse of the Irish banks.

TODAY

The Financial Services Ombudsman, William Prasifka, will publish his biannual review this morning, summarising the number and nature of complaints received by his office in the first six months of this year. The report also details compensation paid to consumers as a result.

PODCAST

Current Account, the weekly Irish Times business podcast presented by John Collins, looks at the issues of the week with Irish Timesreporters and outside experts.

For regular commentary on business and economic issues visit our blog, Current Account, at irishtimes.com/blogs/business

Twitter users can receive links to the latest business news and blog posts by following us at twitter.com/IrishTimesBiz