Two Irish technology companies sold

DUBLIN-BASED technology companies Datac and RealFlex have been acquired by Texas-based Lufkin Industries in a multi-million euro deal.

The price of the acquisitions was not disclosed, but it is understood that Lufkin, a Nasdaq-listed company, has paid $27 million to buy the Irish businesses.

A deal was agreed in principle on December 6th by the parties, but was only disclosed yesterday when Lufkin issued a statement to the market. The main beneficiary of the sales will be Datac founder and majority shareholder Cyril Kerr, who is 60 years of age.

Documents filed in the companies office here indicate that Datac Instrumentation Ltd, which was founded in 1981, is the parent entity for a group of companies with the same name. RealFlex is an associate company.

Datac Instrumentation Ltd’s shareholder base includes some interesting names, among them financier Derek Quinlan, former AIB chairman Dermot Gleeson, and property developer Seán Mulryan.

Datac and RealFlex were advised by NCB Corporate Finance and law firm William Fry.

John F Glick, Lufkin’s president and chief executive, said the acquisitions were expected to be “accretive” to Lufkin’s earnings in 2012 and would “accelerate” its “strategy of expanding our technical capabilities within our automation portfolio”.

“These acquisitions also expand our automation footprint into other energy-related industries such as power, water and waste water. These two acquisitions are a good cultural fit with Lufkin, and Ireland provides a business-friendly environment.”

No comment was available from Mr Kerr.

Lufkin is a global provider of artificial lift products, services and automation solutions for the oil and gas industry.