Management at Bull Cara, the Dublin-based IT services and payroll outsourcing subsidiary of Groupe Bull, has bought the firm in a deal worth #33 million (£26 million).

Six executives at Cara, led by managing director Mr David Little, negotiated the management buyout (MBO) which was financed by Hibernia Capital Partners.

The deal - half in equity and half in bank debt underwritten by AIB - will see the management team own a 30 per cent share of the company. It will put up 10 per cent of the cash.

About 30 staff at the firm, which recorded revenues of #82 million and profit of #4.5 million last year, are expected to invest in the new firm.

Cara has also attracted Mr Pat Garvey, a former deputy chairman of Sharptext group, to invest and become chairman.

This is the second MBO at Cara in seven years. In 1994 a team, which included Mr Little, bought the firm from Aer Lingus. It was later sold to Bull for #18 million.

The sale by Groupe Bull was expected. The company recently announced that it would split in two, sell assets and cut 1,800 jobs.

Mr Little said last night the company would seek to grow both elements of the business and expand the workforce to 400 this year, from its present level of 320.

Cara is an information technology company specialising in implementing IT systems and communications infrastructure in client firms.

It is also a payroll outsourcing firm.

It is understood Cara may seek to separate these two business units as it moves forward.