Technology services firm System Dynamics has acquired Software Resources Ltd (SRL) in an all-cash deal believed to be worth around €1 million.
System Dynamics would not confirm the price paid, citing confidentiality clauses, but said the SRL acquisition would increase its revenues by €3 million to €18 million this year.
System Dynamics chief executive and major shareholder Tony McGuire said the deal is part of an ongoing strategy to position the company as a local alternative to international consultancy and implementation firms such as Accenture, Bearing Point and IBM.
McGuire said he is targeting 2007 revenues of €20 million for System Dynamics.
Some 22 staff will move to System Dynamics which says it will employ over 150 staff at its Dublin headquarters by the end of the year.
The acquisition adds new product and services capabilities to System Dynamics, according to McGuire, as SRL is a significant partner of software applications company Oracle.
SRL also has a relationship with French business intelligence software provider Business Objects.
The deal brings together two of the oldest indigenous technology firms in Ireland. SRL was founded in 1984 by Joe Gorman and has more than 60 clients including the Department of Finance, Cork City and County Councils, Tedcastles, and EBS.
Gorman will exit the company following the acquisition but it is understood he does not intend to resign from the technology industry.
System Dynamics, founded in 1968, is the oldest Irish technology company. It was acquired by McGuire and former IBM executive Conor McWade in 1997.
