Esat Telecom will pay up to £2.6 million (€3.3 million) for Viewpoint Datacomms, a Cork-based systems integration company. Bridgecom, a subsidiary of Esat, said it had acquired the smaller firm for £1.8 million, plus a further £800,000 payable on an earn-out basis over the next two years.

Viewpoint has two shareholders, Mr Joe Eustace and Mr Ted O'Riordan, each holds a 50 per cent stake. It employs six other people at its offices in Cork and Limerick, and works closely with Cisco systems, as does Bridgecom. Yesterday's deal was a cash transaction and does not involve Esat shares.

The smaller company was founded in 1992 by Mr Eustace and Mr O'Riordan. Esat said yesterday it specialised in high-end Cisco-based Local Area Network (LAN) and Wide Area Network (WAN) solutions. In recent years, Viewpoint has expanded its services to include network design and consultancy, network security implementation and auditing.

Bridgecom said the purchase would strengthen the company's network services operations, and welcomed in particular the high levels of Cisco expertise within Viewpoint.

"Our primary focus over the next two years is to significantly grow the services side of our business, and become the premier network services company in Ireland," said Bridgecom's managing director, Mr Paul O'Leary. "We are now the largest player in the Munster region."

Mr Eustace, Viewpoint's managing director, said he was delighted with the acquisition, stressing that the partnership would further enhance his company's customer support.

Bridgecom, set up in 1994, has offices in Dublin and Cork. A subsidiary of Esat Telecom, it has 120 employees.