Monday 21 October 2019

Software group iQuate raises $10m as it looks to the cloud for new growth opportunities

The Belfast-based IT company Novosco has been sold to a German business in a £70m (€79.9m) deal. Stock photo
The Belfast-based IT company Novosco has been sold to a German business in a £70m (€79.9m) deal. Stock photo

Fearghal O'Connor

Irish software company iQuate has closed a $10m (€9.14m) funding round to drive further expansion, backed by Dublin and Silicon Valley based Atlantic Bridge Venture Partners and private investors.

The funding values the tech firm at $40m and comes after it signed global partnership agreements with Hewlett Packard Enterprise and Cisco, while also counting Fortune 500 companies such as DHL, American Express, Sky and Volvo among its clients.

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"This funding allows us to scale the business to take advantage of the opportunities we see in the market," said iQuate CEO Patrick McNally. "We will continue to grow our Dublin HQ teams to support our product delivery, and ramp up our sales and leadership teams in the US and further afield."

The firm specialises in identifying the range of often complex software licences and other IT services that companies use across their technology infrastructure, allowing them to better streamline their approach.

The investment in the firm follows a period in which iQuate refocused its strategy to take advantage of opportunities it saw from the move by many corporates away from software to cloud solutions for their IT needs, said McNally.

"We had an interesting software business, which we made profitable. That gave our investors the confidence to back our decision to build a new enterprise software platform from the ground up, based on a strategic bet that IT investments would move to the cloud, and that companies of all sizes would need help getting there," he said.

McNally said that iQuate now saw itself as being at the forefront of enabling this move to the cloud and allowing companies to take their first step on a digital transformation journey. Companies are moving their IT investments to the cloud, as newer entrants like Amazon Web Services and Google Cloud compete with more traditional IT businesses to deliver new innovations to digital enterprises, he said.

"iQuate's technology identifies how enterprises are delivering their IT business services today, and provides a framework to enable them to migrate to the cloud with confidence," he added.

McNally is no stranger to enterprise IT, having run Dell's enterprise business in western Europe, and he was previously head of sales for EMEA and the Asia-Pacific region at Insight, another Fortune 500 global IT company. He has since tripled the iQuate workforce in Dublin and opened US offices in Silicon Valley.

"The vast majority of our target partners are based in Silicon Valley, and most technology innovation and trends originate there," he said.

"While we had the talent to build a world-class enterprise software product from Dublin, we needed a Silicon Valley presence to showcase our technology and build the strategic relationships with key global partners that would lead to product adoption and company value."

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