Flexicom, the Dublin-based international payment-card software specialist, has raised £3.5 million in a private equity fund-raising. It abandoned a planned flotation this year, but said it still planned to proceed with one in 1999.

The fund-raising will be used to back the company's expansion. It puts a value of £19 million on the firm which was established five years ago and employs 70 people.

Flexicom declined to say which institutions had subscribed to the fund-raising. However, it is understood that five were involved. These include Allied Irish Bank Investment Managers and one other Irish-based institution, Mercury Asset Management, Standard Life and another British institution.

The company is to invest the funds in research and development and international marketing. "We expect this will leave us in a stronger position when we do come to the market, sometime next year," said Ms Orla Brannigan, Flexicom's marketing vice-president.

Flexicom said it was developing new and complementary products for the card processing industry. It was experiencing "significant demand for packaged software products from banks and retailers which are involved in multi-currency acquiring". It intended to widen its product base to include mainstream card processing.

Flexicom's clients include Citibank, AIB Bank and Barclays. The company has formed third-party alliances with Microsoft, Compaq and Oracle.

In a statement, Mr Patrick Shiel, chief executive, said Flexicom had been very encouraged by the strong response from the financial institutions. "In common with most other companies in recent times, we have decided to temporarily delay our plans to seek an immediate public listing," he added.

The company had been planning a dual listing on the Irish Developing Companies' Market and on London's Alternative Investment Market. It was expecting to be valued at more than £20 million. Mr Shiel said the current private fund-raising would allow it to continue with the development plans within the time frame originally envisaged. The fund-raising means the five institutions now hold 18.5 per cent of Flexicom. Mr Shiel holds 56 per cent and his co-founder, Dr John Clarke, 10 per cent. The remainder, which includes options, is held by staff.