Sigma Communications Group has sold a manufacturing and research subsidiary to a US multinational for €22 million.
The major shareholder in the group, chief executive Tony Boyle, said the funds from the sale will go to the group rather than the ultimate shareholders.
Sigma is owned by Mr Boyle, Michael McGinley and Peter Crowley.
Mr Boyle and Mr McGinley, the founders of Sigma, hold 80 per cent of the group by way of BMS Holdings Ltd, Jersey, which is owned by a discretionary trust set up in 1991.
Mr Boyle has a 75 per cent representation in the trust and Mr McGinley 25 per cent.
Mr Crowley, the chief executive of Investment Bank of Ireland owns 20 per cent of the Sigma group.
The subsidiary, Sigma Wireless Technologies (SWT), has been sold to PCTel Inc, which is paying €19.5 million in cash and is assuming €2.5 million in pension liabilities.
The selling stockholders in SWT may also earn up to an additional €7.5 million in cash based on SWT's revenue performance over the period to December 31st, 2006.
The relevant stockholders are Sigma Communications Group and the executive management of SWT.
Mr Boyle and Mr Michael McGinley, the founders of SWT, have also entered into consultancy agreements with Pctel to continue to provide strategic support to the business.
"The proceeds from the sale of Sigma Wireless Technologies will allow us to maintain our strategic investment programme which will continue to facilitate growth in all of our main businesses," Mr Boyle said.
He said the acquisition by PCTel offered the best prospects for the continued global development of SWT.
SWT is based in Dublin and develops and distributes innovative antennas for public safety and UMTS cellular networks.
SWT employs approximately 100 people. The Sigma group, excluding SWT, employs 270 people.
SWT is expected to produce a turnover of approximately €15 million this year, of a total Sigma turnover of €100 million.
Mr Boyle said SWT had over recent years been the recipient of very considerable investment. SWT had come to the stage where to get global access, it needed scale.
"I think this is good news for the Dublin plant," he said.
