The sale of Ivron Systems to US-based Gentner Communications has provided an exit for Trinity Venture Capital. Based in Dublin, Ireland, with corporate headquarters in Texas, Ivron Systems develops and supplies hardware and software systems platforms for video conferencing. The company, previously known as Vedia Technology Ltd, was established in March 1998, when it acquired the business of PictureCom Ltd, the video conferencing subsidiary of Mentec Ltd.
Nasdaq-listed Gentner will pay approximately $6 million to purchase all issued and outstanding shares in Ivron.
In July 2002, on completion of product development targets, Ivron shareholders will receive 450,000 shares in Genter stock. Under an earn-out provision Ivron can earn an additional $9 million in cash and/or stock in 2003 and 2004.
Trinity invested $1 million in Ivron Systems in March 1998 through Trinity Venture Fund 1. The fund was established in September 1997 and raised EURO24 million. The IRR on the investment was not disclosed although it is understood that this is the third successful exit from the Dublin-based technology investor’s first fund. Gradient Solutions, which provides booking systems for the travel industry, and Anshe, a financial services software company, were both sold to trade buyers last year.
Gentner Communications provides an integrated suite of voice, video and web conferencing products and services. The company has an office in Dublin and a wholly-owned subsidiary in Nuremberg, Germany. Last year Gentner generated revenues of $40 million. As a result of
its acquisition of Ivron Systems the company will begin using its VuLink video conferencing product. “Working with Gentner over the past year has confirmed the synergies and compatibility of our two teams. We are tremendously excited about this opportunity and look forward to contributing to Gentner’s continued success,” said Michael Peirce, Ivron’s founder and chairman of the board.
Last month Trinity extended fund raising for its second fund, which has so far raised EURO100 million to invest in early stage and expanding technology companies in Ireland.