Melior Equity Partners, the private equity firm led by former Irish managers with US investment giant Carlyle Group, has agreed to buy a stake of about 70 per cent in Dublin-based treasury management software company, Salmon Software.
It is understood the controlling stake will cost Melior as much as €15 million. Salmon Software's founder and chief executive John Byrne will sell some of his shares as part of the deal, but most of the investment is by way of the acquisition of new stock to grow the business further.
The deal marks Melior’s second investment since it was launched in 2019. It follows the purchase last year of a majority stake in Dublin-based insurance brokerage BHP Insurance, which subsequently went on to acquire Keegan Meredith & Williams Insurances.
Melior was founded by Peter Garvey and Jonathan Cosgrave, former managing directors with Carlyle in the Republic, who co-managed a €290 million private equity fund with Dublin-based Cardinal Capital. The fledgling Melior fund has a target size of €175 million.
Salmon Software, founded in 1985, employs 30 staff across Ireland and the Czech Republic.
The company’s software system enables customers to automate treasury management processes, providing information on debt, derivatives, foreign exchange, banking, cash management and payments. The system delivers efficiencies that save on costs, ensure full regulatory compliance and provide real-time business insights, according to Salmon Software.
Blue-chip customers included building materials giant CRH, aircraft lessor Avolon, Dechra Pharmaceuticals, logistics giant DP World and Ryanair.
“The Melior investment will allow us to grow and invest further in our team, extend our support and sales infrastructure, and deliver product enhancements including a superior cloud-hosted offering,” said Mr Byrne. “This investment will provide exciting career development opportunities for our existing employees, see new talent join the company and will significantly benefit current and future customers.”
Fiona Timmons, an experienced software industry finance executive, has joined the company as chief financial officer and will work closely with Mr Byrne and the existing senior management team.
Melior’s Mr Cosgrave said: “The global treasury management software system market is valued at €1 billion and is forecast to grow strongly over the coming years. As a leading independent provider with strong reference customers, Salmon Software is ideally placed to meet this demand.”
