Shareholder windfall as Logica buys out Aldiscon

Irish telecommunications software group Aldiscon has been bought out by a British company in a deal which values it at almost £57 million. The acquisition by the British-based Logica will make Aldiscon's founder and chief shareholders multi-millionaires.

Aldiscon, which was set up just nine years ago, makes advanced network systems and services for the global telecommunications industry. It is a market leader in short messaging systems, e-mail, Internet and fax data for transmission from one mobile phone to another.

Logica is a leading international IT consultancy, systems integration and software company. Its shares rose by 60p on the London Stock Exchange yesterday on foot of the news.

Aldiscon was founded by Mr Gilbert Little, who has a 16 per cent stake in the company. The biggest single shareholder is Mr Jaye Murray, who is chairman of Aldiscon and owns Murray Communications, a telecommunications cable laying company in Dublin.

Mr Vincent Daly, chief executive of Ericsson and a member of the Forbairt board, has an 8 per cent stake. Mr Larry Quinn, who becomes Aldiscon's chief executive, has a 5 per cent stake as does Mr Joe Cunningham, the company's technical director.

Other stakeholders include Forbairt and ICC Venture Capital.

Mr Little said yesterday that the company had been growing rapidly over the past few years and that listing on Nasdaq had been one of its options. However, the company was approached by Logica late last year and had chosen this route.

Mr Larry Quinn said Aldiscon's business focus would remain the same. "We want to continue to grow in the digital mobile phone sector," he said. "We are a small player in a big market," he said, "and, with their [Logica's] broad shoulders, they should be able to assist us in developing our software and customer support offices around the world."

A spokesman for Logica said the companies were an ideal fit and both share some client customers, including Cellnet and AT & T. "It offers the chance for us to add extra skills in one of our fastest growing market sectors."

Logica's managing director and chief executive, Dr Martin Read, said the acquisition of Aldiscon "a leader in its sector" would enhance Logica's ability to develop and deploy repeatable software solutions in the telecommunications sector.

Aldiscon has seen its turnover rise rapidly in the last three years. In 1995, its turnover was £11.3 million. In the year to March 31st last, it was £30.1 million. Its pre-tax profits have risen from £900,000 in 1995 to £3.5 million this year.

The company employs 240 people. The management of Aldiscon will remain intact. However, Mr Little has resigned as chief executive to take on a strategic role in the international operations of Logica. Logica has 5,200 staff in 20 countries. For the financial year to June 30th, 1995, the company made pre-tax profits of £24.7 million on a turnover of £284.8 million. It estimates that, this year, pre-tax profits have grown to £28.1 million.