Irish technology company, Software Computing Power (SCP), has been acquired by German business systems company, Software AG for an undisclosed sum. The five year old company has conducted 90 per cent of its software development business for Software AG since its inception. It has an annual turnover of around DM1 million (€500,000).
According to one industry source, the value of the deal is estimated to be in the region of £1.5 million (€1.9 million). Software AG has said, under the new arrangement, the Dublin based company will add to its six existing development centres worldwide. There are currently 12 people employed at SCP, while Software AG employs between 60 and 200 people at each of its other software development centres.
Mr Otmar Winzig, a spokesperson for Software AG, said: "The level of expansion in Ireland will depend on electronic business development in general, but it is fair to say we are very optimistic about it at present."
The main attraction to Software AG of the acquisition, is SCP's unique enabling technology which allows businesses install Internet based applications on older mainframe systems. The software lets web browsers communicate directly with mainframe computer programs.
Software AG which recently posted annual profits of DM53 million (€27 million), has been in acquisition mode since it floated on the Frankfurt stock exchange last year. In March it acquired the French software services company GOAL technologies.
