A number of Irish technology companies are expected to be sold through trade sales or floated on stock markets over the next two years, a new report has found. This is the converse of the situation two years ago, according to the Irish Venture Capital Association (IVCA).

The association found that more than one-third of its members expect one or more client companies to float over the next two years. Its last study, two years ago, found that no VCs expected their clients to float before 2005.

The survey also finds that there will be further market concentration and interest from international firms seeking to acquire Irish companies.

"Almost 90 per cent of IVCA members foresee an exit strategy for one or more client companies through a trade sale within the next two years."

IVCA chairman Mr Shay Garvey said last night that many large international firms had considerable cash on their books, having undergone a period of cost-cutting. He said, in many cases, these companies had cut back too much on R&D operations and were looking to buy products and, in some cases, the technology companies that supplied them.

Mr Garvey said the bar had been raised on the Nasdaq where Irish tech companies used to float. Now, he said, typical companies floating on Nasdaq had revenues of $40-$50 million (€31-€39 million) and were growing fast.

"Irish companies are rebounding but they are not really in that league at the moment," he said.

It would be more likely that Irish companies wishing to float would opt for the Alternative Investment Market (AIM) in London, he said.

The survey was carried out among the IVCA's 21 member firms. It estimates that there is around €100 million available for investment by Irish venture capital companies.