Limerick-based software company Kneat Solutions Ltd, has entered into an agreement with a Canadian company that will involve an initial investment of €5.5 million and the creation of 30 new jobs.
The deal with listed Canadian company Fortune Bay Corporation will facilitate increased access to finance and entry into new and lucrative international markets for Kneat’s unique software solutions.
The initial cash injection of €5.5 million is expected to be supported by further growth-led investment and the 30 new jobs are expected to come on-stream over the next two years.
Recruitment is underway for these new roles, including experienced software developers, testers, pharmaceutical process specialists and business development managers.
The deal is also expected to attract future investment as the company looks to fast-track its growth in new international markets.
Based in Castletroy with an office in Philadelphia, Kneat is a fast-growing software development company that allows life science companies to become paperless, compliant and efficient with many of their regulated data and document intensive processes.
It currently employs 30 people between its Limerick and Philadelphia offices.
Chief executive Eddie Ryan said the deal with Fortune Bay was an important step in capturing the rapidly growing market for compliance related document and data management software for regulated industries.
“In acquiring access to increased financial resources and entry into a lucrative marketplace, we can accelerate our international growth plans.
“We launched our first solution in 2014 initially targeting validation applications for the biotech and pharmaceutical industries, and can now count several blue-chip biotech and pharmaceutical companies as clients. Our software is also applicable to other industries such as oil and energy, aviation, nuclear and automation where good data management, good documentation practices and regulatory compliance are highly valued.
“As we enter this next chapter in our company’s history, I would like to acknowledge the Department of Jobs, Enterprise and Innovation through Enterprise Ireland, whose support in growing our business has been invaluable,” Mr Ryan added.
The transaction agreement with Fortune Bay will involve the creation of a new listed Canadian software company. Kneat shareholders will own 68.7 per cent of the merged entity and the current Fortune Bay shareholders will own the remaining 31.3 per cent.
The new company will retain the Kneat name and Eddie Ryan will remain as chief executive. While its stock will trade on the Toronto Stock Exchange, its key operations will remain in Limerick with an increasing sales and support capability in the United States.
This gives current Kneat shareholders the opportunity to trade on an international stock exchange.
The transaction has been unanimously approved by the board of directors of Kneat and Fortune Bay, subject to regulatory and shareholder approval.
