Mobile tech startup Feedhenry is in talks over buyout
One of Ireland's most successful technology startups looks set to be acquired in a deal which is expected to net millions for its founders and backers.
Waterford-based Feedhenry is understood to be in advanced discussions with a multinational technology company which will see the five-year-old firm integrated into the larger corporation.
Industry sources say that a deal is close to being finalised with the multinational organisation, which is understood to be a major software firm.
Feedhenry, which develops mobile internet technology that allows big companies to create specialist mobile applications, raised €7m in 2013 in a funding round led by Intel Capital. Other backers include Kernel Capital, VMWare and ACT Venture Capital.
The company, which was founded by Waterford-based serial startup entrepreneur Barry Downes, has grown to 70 people in Waterford, the UK and the US.
The company's chief executive, Cathal McGloin, declined to confirm specific acquisition negotiations.
"We're in discussions all the time with big companies, normally with a view to partnering," said McGloin. "Technology companies are always for sale in the sense that if someone big enough comes along, you have to consider it. And that's particularly the case when you have investors such as Intel capital. But I can say that we are in expansion mode."
McGloin said that the company had seen an acceleration in the business it was winning this year.
"We just won a €2m deal six weeks ago and we're starting to see lots of deals come along," he said. "We're beating companies like SAP and IBM. There's a huge transition from desktop to mobile underway. We have solutions, which is why we're now partnering with huge companies like VMWare, Rackspace and HP."
A recent investment research report by Forrester calculated that the value of the mobile apps market would grow to €28bn by 2015.
Sunday Indo Business