DERMOT WILLIAMS, founder of one of Ireland’s first IT security providers, has started a new venture with staff that had been made redundant from his former company, which went into liquidation under its new management.

Formed in 1988, Systemhouse Technologies was acquired by the Top Security Group six years ago. It went into liquidation last month owing close to €2 million, following a High Court petition by one of its major creditors over an unpaid debt. Systemhouse had been trading as part of Top Security Group’s IT security division Topsec but remained a separate company.

The sale of Systemhouse in 2004 earned €7 million for Mr Williams and his wife as that company’s sole shareholders. Mr Williams left Systemhouse in February 2008 following the expiry of his earn-out period.

He said he was “saddened and surprised” on learning of his former company’s liquidation and that the staff had been made redundant. He decided to form a new IT security business and approached six of his former colleagues to join the company, which will trade as Threatscape. Five of Threatscape’s management team will have an equity stake in the new business.

In its first two weeks of trading the company had won more than €250,000 in new business. Some of this was due to pent-up demand, Mr Williams said, as IT security spending has remained buoyant during the recession even as other technology budgets have been cut.

Threatscape is projecting revenues of €3 million in its first year. By December the company plans to employ a further seven people.

After forming Threatscape, Mr Williams submitted a bid to the liquidator, David van Dessel of Kavanagh Fennell, to buy the assets of Systemhouse including stock, fixed assets, customer base, business and goodwill in a single transaction.

The sale has been agreed and the financial and legal process is expected to conclude next week.