Managed Solutions Corporation, the Dublin-based customer relationship management company, is raising between £10 million (€12.7 million) and £18 million to fund expansion and prepare for an initial public offering on the Nasdaq.
The firm, which develops software and integration solutions for banks and insurance companies, has appointed Goodbody stockbrokers as its Irish broker and plans to appoint an international broker early next year.
Most of the funding will be spent on sales, marketing and expanding staff numbers. However, Mr Michael Kelly, managing director of Managed Solutions Corporation, would not rule out an acquisition.
"We will invest our money in organic growth but if we see suitable acquisition targets we will take them," said Mr Kelly.
He said the company was aiming to take a listing on the Nasdaq next year, but this depended on market conditions and the development of the company over the next few months.
The pre-flotation round of funding is the first substantial sum the company has raised since it was founded in 1996. A Dutch insurance company, Royal Netherlands, will have the opportunity to increase its stake in the firm from its current level of 0.8 per cent.
Mr Kelly said the company would seek to gain a strategic partner through the fund-raising and get the backing of some Irish institutions. "Ireland is the place to be, in terms of business money," he added.
Managed Solutions Corporation expects to generate almost £10 million in revenues this year, reported profits of around £500,000 in 1999.
The company has four major products all aimed at enabling financial institutions to integrate their front and back office systems on Web-based technology. This promotes cost-efficiencies and easy access to customer databases.
The company has clinched several multimillion pound software licensing deals for its Clientwise, Lifewise, Workwise and Oasis solutions. It signed a £5 million deal with the British building society Britannia last week and a £10 million deal with Royal Netherlands in January.
Some of the funding will be used to develop software products to integrate further channels with its solutions, including digital TV and WAP-based services. The company hopes to double its staff to about 480 people within the next 12 months.
However, the main focus this year will be a major sales and marketing push to increase sales, according to Mr Kelly. The company already has offices in the US and is considering establishing a presence in Central and Eastern Europe, he added.
Current shareholders in Managed Solutions Corporation include Enterprise Ireland, Royal Netherlands and the management team, including Mr Kelly.
