HIGH-PROFILE Irish software company Iona Technologies, which grew out of research carried out in Trinity College Dublin in the 1980s, is to be sold to a US firm in a $162 million (€103.8 million) deal.
At its peak in 2000, the company was worth $1.75 billion and had an annual turnover in excess of $100 million. On March 10th of that year, the company's share price peaked at over just over $98. It was sold yesterday for $4.05 per share.
Progress Software emerged as the successful buyer following a sale process that began last February, when Iona received an unsolicited bid from German firm Software AG.
The individuals who will benefit most from the sale are Iona co- founders Dr Chris Horn and Dr Sean Baker. Dr Horn, who is vice-chairman of the board, holds 6.35 per cent of Iona, which will see him receive about $10.2 million.
Dr Baker holds 3.18 per cent of the outstanding shares, which are worth about $5.1 million.
Iona was founded in 1991 by Dr Horn, Dr Baker and Annrai O'Toole, a colleague in Trinity College's computer science department.
The company went on to become one of Ireland's most successful technology ventures as it benefited from the upsurge in technology spending in the late-1990s. The company floated on the Nasdaq stock exchange in February 1997 at a price that valued the company at $329 million.
Dr Horn had two stints as chief executive of the company - 1991- 2000 and 2003-2005. He is currently vice-chairman and since stepping back from a day-to-day role has become a director of a number of software start-ups. Dr Horn is currently chairman of Unicef Ireland and Trinity College's science gallery.
Mr O'Toole left Iona in 1999 to establish his own venture, Cape Clear, which was sold to a US firm last year. Dr Baker stepped back from an executive role last October and is a board member of a number of research institutes and professional bodies for the technology industry.
Iona was a popular proving ground for graduates, and former staff have gone on to found their own successful ventures. Despite having large customers such as Credit Suisse, Ford and the Italian postal service, Iona had struggled in recent years in the face of competition from larger rivals.