TRINTECH, THE Nasdaq-quoted Irish financial software firm, is to be acquired by US private equity firm Spectrum Equity Investors for $129.4 million (€93 million), netting founder Cyril McGuire an estimated $27 million.
Under the acquisition, which is subject to shareholder approval, shareholders will receive $6.60 per American Depository Share (ADS), equating to €3.30 per share.
Cerasus, a wholly owned subsidiary of Spectrum, which was incorporated on October 13th, is acquiring Trintech.
It is understood that a number of other private equity firms expressed interest in buying the company.
Goodbody Corporate Finance advised Spectrum on the deal with William Blair advising Trintech.
Trintech maintains a Dublin headquarters but is largely run out of Dallas, Texas.
Founded in the 1990s by brothers Cyril and John McGuire, the company initially focused on electronics payments but, since 2000, has focused on providing financial software in the areas of governance, risk and compliance.
In September 1999, the company was floated on the Nasdaq in New York and the German Neuer market. At the time, Germany was the biggest market for the company’s payments systems.
The company has been selling off various parts of its business over the last few years. In April this year, it sold its healthcare division for $34.5 million.
Trintech posted revenues of $32.5 million for the year ended January 31st, 2010, and pretax profits of $2.7 million.
Founded in 1994, Spectrum Equity Investors has $4 billion in assets under administration.
The Boston-based company specialises in technology investment, and was part of the Denis O’Brien-backed consortium which unsuccessfully bid for Eircom in 2001.
