Dublin-based financial software firm Cognotec has set up a joint-venture operation in Korea and raised an additional $10 million (€11.3 million) finance from Softbank Finance Corporation.
The Japanese Internet investment group has pumped $60 million into Cognotec over two years, boosting its stake in the firm to 31 per cent.
Softbank is a joint venture partner in Cognotec's Japanese operation and will form part of its new Korean operation. The other partner is the Korean company Postdata Co.
Cognotec's software automates internal and customer banking transactions and is available through own-branded Web delivery.
Its suite of services include its AutoDeal LITE and Autodeal Direct products. These enable bank treasury departments to support customers with unique, deal specific, executable prices without direct involvement from dealers.
The Korean joint venture formed yesterday will offer these real-time, foreign exchange and money market trading services to financial institutions across the State.
Mr Albert Maasland, director of marketing at Cognotec, said yesterday forming joint venture partnerships in Japan and Korea enabled the firm to exploit local markets that sometimes were difficult to enter.
"Korea is a complex market which is just opening up," said Mr Maarsland.
He said the Japanese joint venture with Softbank was performing well. The firm recently secured a deal with one of Japan's largest banks, Bank of Tokyo Mitsubishi.
Cognotec will use the additional $10 million funding to complete its transition from a software firm with a licensing revenue to a full application service provider.
The company is currently working with 90 financial institutions in more than 23 countries. Cognotec has raised about $100 million in funding and is considered a candidate for a public float when the markets recover.
The $10 million investment agreed yesterday will dilute its other institutional investor, New York's Warburg Pincus, stake to below 20 per cent.
Founder and chairman of Cognotec Mr Brian Maccaba, management and staff hold a little more than 50 per cent.
Last night Mr Maccaba said he was particularly pleased with the ongoing financial support of Softbank Finance, despite the difficult funding market for all technology companies.
Softbank Finance, which is worth in excess of $13 billion, is a subsidiary of the technology company Softbank Corp, the largest shareholder in Internet giants Yahoo! and E*Trade.
Cognotec employs around 250 people, with about twothirds of these based in the Republic.
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