$100m paid for Dublin software company

A banking software company based in the East Point Business Park, Dublin, has been sold for up to $100 million (€83.3 million) - one of the largest prices for an Irish software company.

The sale of Eontec Ltd to US multinational Siebel Systems is one of the clearest signals to date of returning confidence in the technology sector.

It is understood Eontec has been suffering losses in recent years but may make a small profit this year.

Siebel Systems has agreed to pay $70 million in cash for the company upfront and up to $60 million more depending on the company's performance over the coming year.

Eontec's own projections indicate its shareholders are likely to get about $30 million of this "earn out" fee, bringing the total price to $100 million.

One of the company's founders, Mr James Callen (41), owns 6.7 million of the company's 38 million shares, or approximately 17.6 per cent. This would indicate he could earn about $17 million from the sale, though complex share structures mean the figure is hard to estimate. The chief executive, Mr Patrick Brazel, has 2.5 million shares in the company.

Other significant shareholders include another founder, Mr Colin Piper, who has about one million shares.

A company based in Madeira and owned by Mr Denis O'Brien owns one million shares in Eontec. He invested in the company in 2001 and is likely to make a significant return on his investment.

A number of employees held share options which have been converted to shares. Company secretary and chief financial officer Mr Denis Murphy has an option to buy 250,000 shares at a price of between $0.88 and $1.47. The sale is likely to value the shares at approximately $2.50.