Norkom, which supplies anti-fraud software to the financial services industry, has made its first acquisition since listing on AIM last summer. The Irish company has bought US-based Digital Harbour, another specialist in risk management and compliance.

Norkom, which supplies anti-fraud software to the financial services industry, has made its first acquisition since listing on AIM last summer. The Irish company has bought US-based Digital Harbour, another specialist in risk management and compliance.

The acquirer will pay up to $36.5 million in cash (£18.0 million), with the bulk of the consideration to be settled immediately and a deferred payment of $3.5 million dependant on the performance of the acquired business.

The deal will be funded by existing cash resources, credit, and a proposed placing of ordinary shares which is expected to raise a minimum of €10 million (£6.7 million). Goodbody Stockbrokers will handle the placing, which does not require approval from Norkom’s shareholders.

Currently, Norkom earns a third of its revenues from clients in the US. Buying Digital Harbour allows the company to grow its customer base in the region and extend its product range, according to chief executive Paul Kerley.

Digital Harbour also offers its acquirer established partnerships with IBM and electronic payments company eFunds. The company employs 74 staff in the US and India, and made unaudited revenues of $7 million and losses before tax of $3.2 million for the year ending in June.