Senior management at Wolfe Group, a Dublin-based technology firm, was talking to interested parties yesterday about selling the business. The firm, which provides managed services and technology support to clients, faces a funding crisis in the midst of a severe shake-out in the high-tech sector. The company currently employs 30 people, but previously employed up to 80 staff.
Sources said last night Nevadatele.com, a Belfast-based telecoms provider, was one of a number of parties interested in acquiring some of Wolfe's assets.
Wolfe would be a good fit for Nevadatele.com because its expertise in managed services would complement Nevada's data centre infrastructure, said a source.
Company representatives at both Nevada and Wolfe would not comment yesterday.
Last year Wolfe, which was founded by four former executives at Dublin software firm Iona, raised £5 million (€6.35 million) from 3i Group, the UK venture capital firm. But the managed services and internet data centre industry is facing a severe downturn which has resulted in several high profile closures already this year.
Last Friday, Worldport, a US firm which invested more than $70 million (€79 million) in the Republic, closed its Dublin internet data centre with the loss of 89 jobs.
The company said yesterday it would focus on the most significant near-term market opportunities and align expenses with a more conservative growth plan.
Worldport's closure less than a year after it was opened by the Taoiseach follows on from the demise of similar facilities set up by Cityreach and 360 Networks.
Predictions of huge demand for these services have not materialised. Many companies in the sector face cash crises due to the huge fixed costs of establishing and running facilities.
IDA Ireland, which markets the Republic as a European hub for web hosting and managed services, had indicated that 22 internet data centres were planned for the Republic. It is understood 14 centres have been set up so far.
