PERCANA, THE Dublin-based provider of software and outsourcing services to the life and pensions industry, has received a strategic investment from a firm backed by financial services giant State Street.

The entity that has taken the stake in Percana is International Financial Data Services (Ireland), one of a series of joint ventures between State Street and DST Systems, a specialist US provider of technology to the mutual funds industry.

In a statement released yesterday, Percana said IFDS Ireland had acquired "a substantial minority interest", but did not give any financial details of the transaction.

Industry sources suggested that IFDS provided €7 - €8 million in capital in a deal that valued Percana at over €25 million.

William Slattery, managing director of State Street Ireland, and Pat Concannon, chief financial officer for IFDS Ireland, will both join the board of Percana.

Paul O'Kane, executive chairman of Percana, said that there was a natural fit with State Street and IFDS as all three firms were selling to life and pension firms.

"We've been building our own brand, but to get a global brand like State Street behind us will really accelerate our growth," said Mr O'Kane.

He said the deal had already produced sales opportunities with associated companies of IFDS in the US.

Mr O'Kane was also critical of venture capital firms that are traditional sources of funding for technology start-ups. He said Percana met a large number of such firms but it was "hard work to convince them" to invest compared to the institutional investors.

Founded in 1999, Percana employs 100 staff at its Dublin base and its clients include Italian group Generali, Quinn Life, Anglo Irish Assurance and Commercial Union International Life.

Its Eclipse product provides a front, middle and back office platform for managing life and pension products.