Gradient Solutions, the Dublin-based company specialising in software for the travel industry, has just received a £1.36 million (€1.73 million) investment from Trinity Venture Capital group. Under the arrangement, Trinity takes a 21 per cent stake in Gradient, placing a valuation on the company of around £6.48 million. The company which was formed just two years ago, has also announced the appointment of former Telecom Eireann chairman, and KPMG managing partner, Mr Ron Bolger, as non-executive chairman.

It is understood Gradient will make an announcement shortly about a significant contract, valued in excess of £1 million with a household name in the air travel industry.

According to Mr Gerry Samuels, Gradient joint managing director along with Mr Stuart Coulson, the capital injection from Trinity Venture Capital will be invested primarily in research and development, with the remainder earmarked for sales and marketing.

Mr Samuels and Mr Coulson are joint majority shareholders in the company. Enterprise Ireland retains a 10 per cent stake, and employees have been set aside an undisclosed share allocation.

The company plans to take on an additional 30 employees bringing its workforce here to 60. Gradient also operates two small satellite development shops in Switzerland and London.

Gradient's clients, which include airlines, tour operators, travel agency chains and travel insurance companies, use its software to sell products over the Internet. Its technology operates as "middleware" - converting cumbersome, airline mainframe information into a user-friendly format the public can readily use. The Gradient move is Trinity Venture Capital's seventh investment in the technology sector. The £20 million fund is comprised of investment from the Reihill family, AIB, the European Investment Fund, Eircom Superannuation Fund and Enterprise Ireland.