Curam Software, the Dublin provider of software to help government agencies administer social welfare and health services, has been acquired by IBM.

No financial details of the transaction were released.

Curam had revenues of $79.8 million (€59.4 million) in 2010, down from $91.2 million in 2009 but chief executive and co-founder John Hearne said the company was on course to have revenues of $100 million in 2011.

This suggests the deal may have been worth at least $150 million as industry analysts suggest enterprise software companies like Curam are being valued at 1.5 – 2.5 times their revenues.

Mr Hearne described the sale, which will close later this month, as a "very exciting day for us." He said the deal would enable Curam's software to be sold in 170 countries rather than the nine it is currently active in.

The acquisition is "substantial news" for both IBM and Curam, said Craig Hyman, general manager of IBM's industry solutions group. He said Curam would be integrated into IBM's Smarter Cities initiative, which he said aims to help governments run urban areas more efficiently and get better results for citizens.

Last year IBM announced the creation of a $66 million research centre for the initiative based in Dublin.

Backers of Curam include state agency Enterprise Ireland and US firm Fidelity Investments which invested $10 million in late 2002. In 2000, IBM provided loans of $4.1 million to Curam, then known as IT Design, to facilitate its entry into the US market, but this has since been repaid.

Curam generated a pre-tax profit of $8.2 million last year. The company employs 700 staff of which close to 300 are based in Dublin.