British technology firm ID Data has agreed to pay €3.42 million to buy the Dublin-based company CardBase Technologies.
The deal, which is subject to the approval of ID Data's shareholders, is being financed by the issue of 32,639,973 shares by ID Data priced at seven pence each on the AIM market in London.
CardBase Technologies, which counts entrepreneur Mr Denis O'Brien among its shareholders, supplies software to enable smart cards for banking, retail and security companies.
The firm, which supplies its technology to British Airways, emerged last year from examinership triggered after it ran out of cash when the dotcom bubble burst in 2001.
CardBase's existing institutional shareholders have agreed to subscribe for 10,975,429 new shares in ID Data at 7 pence at a cost of €1.15 million.
ID Data will use these funds as capital to grow the CardBase business, it said.
CardBase's institutional shareholders - Bank of Scotland (Ireland), a member of the HBOS; ICC Equity; Eastbound Consultores e Servicos, Portugal; and LTG International - have agreed to hold onto the new shares for at least six months.
A statement issued by ID Data said CardBase generated sales worth €2.1 million in 12 months to December 2003. During this period it made a pre-tax loss of €1.7 million. At the time of the deal net liabilities will be €400,000 once development costs are charged against profits, it said.
The senior management of CardBase and its 40 staff would remain to assist ID Data in developing the business, it added.
ID Data shareholders will vote on the offer and the increase in share capital at an extraordinary general meeting on July 6th, 2004.
