The Howth-based airline communications software firm, Datalex, is expected to be valued at around $700 million (€719 million) when it takes a dual listing on the US Nasdaq index and the Irish Stock Exchange at the end of July.
The Irish Times has learned that Datalex plans to raise "north of $100 million" when it floats between 15 and 20 per cent of the company towards the end of the summer.
Underwriters to the deal have been appointed and include Credit Suisse First Boston, Goodbody Stockbrokers and AIB Capital Markets. Datalex is currently 40 per cent owned by its founder and managing director, Mr Neil Wilson. Following flotation, his stake will be valued at around $280 million.
The investment vehicle of Mr Dermot Desmond, International Investment and Underwriting (IIU), currently holds a 10 per cent stake in Datalex. Staff and non-executive directors share a 20 per cent stake, while ICC Bank and AIB Information Technology Fund and associated funds hold 15 per cent and 8 per cent respectively. The Dutch venture capital company, Parnib Venture Capital, retains 4 per cent of Datalex stock, while Enterprise Ireland has gradually diluted its shareholding from five to 3 per cent.
Datalex, which was founded 15 years ago, has enjoyed substantial annual growth since 1997, growing at around 100 per cent year on year. Fuelled by a number of international strategic acquisitions, adding technology, distribution channels and customer bases to the business, Datalex has said it expects conservatively to have sales of around $45 million this year.
It is understood Datalex will announce another acquisition, valued at around $50 million, next week. This will add a further 50 employees to its 325 staff. Datalex does not compete with online travel business-to-consumer operations like Travelocity or Microsoft's hugely successful Expedia. Its focus is on business-to-business e-commerce for traditional airline companies looking to change. Up to 60 per cent of the company's business is currently located in the US, where it has been instrumental in providing traditional airline businesses with technology to handle the Internet revolution. Much of the company's success to date can be attributed to fortuitous timing and its ability to answer market demands through a focused growth strategy.
Mr Wilson said Datalex opted to seek a Dublin listing primarily because the company was Irish, but also because the EU airline industry was beginning to accelerate on foot of the dramatic changes taking place in the US.
"The global travel market is in a state of upheaval, with the Internet wreaking havoc on traditional computer-based distribution mechanisms. Time to market is critical and we need to react to customer demand," he said. "This flotation is not just about raising cash, but about increasing visibility, stock liquidity and our ability to keep attracting staff. We want to send a message to the customer base that we operate an open, substantial business."
Datalex has a blue-chip customer base, which includes nearly every major international airline, the four primary global airline distribution systems and, more recently, cruise and rail companies.
In December, Datalex raised $30 million in private funding, an offering that was heavily oversubscribed. Then it acquired the Manchester company, Teamworks, for $14 million in January, its fifth acquisition in a year.
With headquarters in Dublin, Datalex has offices in Manchester, Amsterdam, Johannesburg, Atlanta and Melbourne. It plans to develop its Asia-Pacific business in Singapore this year.
