Two former senior executives at Corel Corporation, the Nasdaq-quoted software developer that recently shed 139 jobs in Dublin, have set up their own firm with Corel backing.
The new firm, Alchemy Software Development, is being headed by Mr Tony O'Dowd, former executive vice-president and general manager of Corel's Irish operation.
It is being financed by private funds and an equity investment of £500,000 (€634,000) from Corel. The Canadian firm has taken a 24.9 per cent stake in the company.
Alchemy has purchased the licensing rights to Corel's Catalyst
software product, which was developed jointly by Mr O'Dowd and Mr Enda McDonnell, Corel's former technology manager who is also joining the start-up.
Catalyst software is designed to boost the efficiency and quality of global software products and is used by more than 200 software development companies worldwide, including big-name companies such as America Online.
"Alchemy's primary focus will be to extend the appeal of Catalyst and embrace Internet technologies," said Mr David MacDonald, chairman of Alchemy's board of directors. "It will provide solutions to customers that want to release their software products in international markets quickly, efficiently and with high quality."
Alchemy has recruited six software developers and two Web specialists, and aims to double its staff by the third quarter of next year. It is forecasting revenues of £2 million in 2001 and £6 million by 2003.
Mr O'Dowd said the deal with Corel was a kind of management buyout. "We were offered venture capital funding for the company but decided to wait a year and build the business before raising funds," he said.
He said the company would put its order entry forms for customers online and build a Web version of the Catalyst product.
Under the terms of the deal with Corel, the Canadian company will retain the usage of Alchemy's technology within their localisation teams, while Alchemy will focus on developing and supporting the technology for existing customers and expanding the customer base.
