An Irish-based card-payment processing joint venture between Bank of Ireland and Nova EuroConex Holdings, said yesterday it planned to acquire a 51 per cent stake in Flexicom for €1.5 million (£1.18 million).

The deal, which is expected to be phased over 12 months, will extend a lifeline to Dublin-based Flexicom, which was threatened with closure earlier this year.

The joint venture firm, EuroConex, has also negotiated the option to purchase the remaining 49 per cent stake in Flexicom three years after the investment.

EuroConex said the funds would be invested directly in Flexicom for product and market development purposes. Both companies will continue to trade separately.

Flexicom was in the news earlier this year when Eircom, a former 30 per cent shareholder in the business, threatened to write off its investment in the firm.

Eircom subsequently sold its 30 per cent stake in Flexicom back to its directors for the nominal sum of £1 to enable a restructuring.

Eircom originally paid more than €10 million for its 30 per cent stake in 1999.

It is believed Eircom included a clause in this deal which entitled it to a 10 per cent stake if Flexicom was bought out within one year.

Documents filed with the companies office show former Labour Party leader, Mr Dick Spring, resigned as a non-executive director of Flexicom on February 28th. Flexicom's last filed accounts for 1999 show the firm lost more than £1 million (€1.27 million) on turnover of about £2 million.