Riverdeep was founded in 1995 by schoolteacher turned serial entrepreneur Pat McDonagh, who had just generated his business fortune following the flotation of … The offer, at $1.51 cash for each Riverdeep share, was made by Hertal, a buyout vehicle controlled by Riverdeep's chairman and CEO Barry O'Callaghan, and non-executive director Patrick McDonagh. It is understood that, rather than look to the Riverdeep balance sheet again, Mr O'Callaghan funded the buy-out of Mr McDonagh's stake from personal debt which was raised in part from Riverdeep's institutional investor base. Accumulated losses totalled €26.9 million. BARRY O'Callaghan, the executive chairman of Riverdeep, has bought out Pat McDonagh, the company founder, in a deal which puts a $1bn (?775m) enterprise value on … In 1995, McDonagh co-founded Riverdeep, a software developer. Despite making a 100pc premium to their original investment, it is understood both firms were reluctant sellers. The company is founded in Dublin, Ireland, by Pat McDonagh. Founder of Supermac's Ireland Ltd., Patrick J. McDonagh presently occupies the position of Chairman for Digisoft.tv Ltd. and Managing Director at Supermac's Ireland Ltd. On November 14, 2002 , the Issuer issued a press release indicating that it had been advised of Mr. McDonagh's intention of joining with Mr. O'Callaghan in his approach. In May, according to the Financial Times of London, McDonagh sold his 30 percent stake in Riverdeep for $120 million. By the time the deal was closed the consortium paid 151c a share, valuing the company at $373m. More from The Irish Times Those bonds, which are traded in Luxembourg and which carry a 9.25pc coupon, are now trading at a 12pc premium to their original price. He said Digisoft has built up a sizeable global client base, which is growing at a rate of over 20 per cent annually. One year later Mr McDonagh and Mr O'Callaghan triggered an option to buy out their venture capital partners in deals which valued the company at $850m. If Pat McDonagh is seen as the big winner in Riverdeep thus far, Barry O'Callaghan is likely to be the person gaining most from the current process. Mr Kelly said Digisoft has worked for and with some of the leading global brands in the media, tourism and life sciences industries. McDonagh, 56, sold his Riverdeep stake for £50m, and chairs ThirdForce, a Dublin e-learning firm. Riverdeep, the Irish educational software company, has completed a £2 million equity investment round. If you are using Internet Explorer 9, 10 or 11 our Audio player will not work properly. Riverdeep was founded in 1995 by Pat McDonagh, a former schoolteacher who had previously floated Smartforce, formerly CBT, a computer-based training company for corporations, on Nasdaq. Despite speculation about a possible flotation, it is understood Mr O'Callaghan has no plans to return to the market he left in April 2003. Jul 27, 2000: The company acquires ED-Vantage Software, Inc. Aug 01, 2000: The company signs a definitive agreement to acquire the assets of Edmark Corporation from IBM. Pat McDonagh,the IT entrepreneur who founded Riverdeep and CBT, has sold Thirdforce — his third e-learning venture — for about $70m (€53m) in cash.Thirdforce, based in Dublin, is … Riverdeep Interactive Learning Ltd. is an education software developing company. For a better experience use Google Chrome, Firefox or Microsoft Edge. Sign Up, Impressive drone light show spotted in Dublin, The key revelations from Meghan and Harry’s Oprah interview, Rap music accidentally played during mass in Donegal church, Oprah Winfrey interview: Meghan Markle reveals she had suicidal thoughts, Donegal priest asks Alexa to play Daniel O'Donnell during mass service, Interview: Ambitious plans for growth of funds at Amundi Ireland, Davy scandal: The future of Ireland's oldest stockbroker company is on the line while new probe is expected, US fashion giant Abercrombie & Fitch to close Dublin city centre flagship outlet, One insurer holding out on claims for Covid cover, CRH sees more single-family homes being built, Davy’s in-house golden circle has yet more questions to answer, Hauliers use Northern Ireland as ‘back door’ for UK imports, Dolphin Irish directors received loans of €3.6m before liquidation, Gardaí investigate bomb threat to Justice Minister Helen McEntee, Judge delays trial of former police officer in George Floyd death, ‘It was not Queen nor Prince Philip who asked about baby Archie’s skin tone’ - Oprah Winfrey, All clear for primary pupils and fifth years to return to school next Monday. BARRY O'Callaghan, the executive chairman of Riverdeep, has bought out Pat McDonagh, the company founder, in a deal which puts a $1bn (?775m) enterprise value on the educational software publisher. In the past Mr. McDonagh held the position of Chairman for ThirdForce Plc and Director at Riverdeep … The company employs 30 people. He is a former school teacher, and now a multi-millionaire. Their flagship product was Destination Success, a tool for educators. We will be investing in the business with a focus on growing it in the years ahead,” he said. Its flagship product is … He grew the small educational software company into the largest K-12 publishing company in the American education system through a series of acquisitions that were funded by loans. Their flagship product … Riverdeep founder Pat McDonagh and CEO Barry O’Callaghan may wish to remember the date of their company’s IPO as Triple Thursday; Riverdeep’s more than six million American depository shares rocketed from their $20 offering price to a close of almost $67 at the end of trading Thursday. In a more unusual move, the company recently developed a Bluetooth dongle for Covid exposure monitoring that is being deployed by the Irish defence forces. Last year both he and Mr O'Callaghan took $50m out of the company after arranging a refinancing which raised $175m in mezzanine debt. We are very excited about what the future will bring and the potential in our industry. The company used a ?300m bond issue to fund the buy-outs and to restructure existing debt. Mr O'Callaghan's decision to take a majority stake in the company will assure fellow shareholders that he is committed to the company. Menu Mr O'Callaghan worked for both Credit Suisse First Boston and Smith Barney where he specialised in taking companies public and co-ordinated Esat Telecom's flotation. On or about November 12, 2002, Patrick McDonagh agreed to join with Mr. O'Callaghan in his approach to the Issuer. But the brash master-of-the-universe lifestyle didn’t appeal to him and he was drawn home to Ireland by Pat McDonagh, who hired him to help float Riverdeep on the US Nasdaq exchange. Former teacher Pat McDonagh has developed a knack of making millions, write Des Crowley and Ciaran Hancock Two-and-a-half years later Riverdeep is … This field is required Alchemy received $99m, while MSD received ?9m. RIVERDEEP, the electronic learning company founded by former school teacher Pat McDonagh, saw its losses treble in 2004. Digisoft had revenues of €2.7 million and pretax profits of €382,000 in 2019. Subscribe. Shares in Riverdeep were up over 14% mid-morning on news that founder Pat McDonagh is backing CEO Barry O’Callaghan’s bid to buy out the company. In 1998 he spun Riverdeep, whose customers are primarily schools, out of CBT, an educational-software company aimed at the corporate sector. The e-learning company set up by Riverdeep founder Pat McDonagh is planning a $564m merger with US rival Skillsoft. No financial details relating to … Enter email address Tech Tools: The best of two worlds are brought together in DJI’s latest drone, Review: Rugged but sensitive phone protects against water and can be used with gloves, Review: Headphones are extremely comfortable, while the sound quality is excellent, Singing, dancing and drawing with Don also feature in the launch of Easter online camps, For the best site experience please enable JavaScript in your browser settings, Davy group of 16 face possibility of personal sanction from Central Bank. Mr McDonagh previously had a 40 per cent stake in the company, which sells software services for set-top boxes and on-demand streaming services to telcos. In recent years, Digisoft has also increasingly focused on developing solutions using technologies such as VR/AR (virtual and augmented reality) to produce “visitor engagement” products in areas such as retail and tourism. Do young people really need to go back into the office? Davy Q&A: Who was involved, what happened and what is the likely fallout? Ken Early: Klopp all at sea as Liverpool continue to flounder, Irish-owned enterprises raise their spend on R&D activities, Discover a family affair with whiskey and own a piece of the story, Building a resilient workforce to help shape a ‘new better’, New EU labelling system for appliances gets top marks, How to save money on your house sale - and what to do with it. Pat McDonagh is a former teacher and e-learning entrepreneur. Riverdeep founder Pat McDonagh and CEO Barry O’Callaghan may wish to remember the date of their company’s IPO as Triple Thursday; Riverdeep’s more than six million American depository shares rocketed from their $20 offering price to a close of almost $67 at the end of trading Thursday. Monday to Friday. February 2, 2021, 04:50 Serial tech investor and Riverdeep founder Pat McDonagh has sold his shares in Cork-based video software company Digisoft as part of … Moving to a right-sized home: What are your options? Media-shy Meath businessman Pat McDonagh (68) made a fortune from software in the 1990s, but in recent years is believed to account for his financial success thanks to … Last year's $175m mezzanine debt package carried a 13.5pc coupon, reflecting the fact that in the event of a problem the bonds will be paid back first. Riverdeep Interactive Learning Ltd. was founded in Dublin, Ireland, in 1995 by Pat McDonagh. Serial tech investor and Riverdeep founder Pat McDonagh has sold his shares in Cork-based video software company Digisoft as part of a management buyout. 2000: Members of the management buy the company. Insiders say the two men used the cash to pay back personal loans they took out to fund an earlier MBO. No financial details relating to the buyout have been disclosed. Founded in 1995 by Patrick McDonagh, Riverdeep is behind popular educational software brands Reader Rabbit, Carmen Sandiego and Cluefinders. Riverdeep made operating profits of $64m in 2004. Sections. Digisoft had revenues of €2.7 million and pretax profits of €382,000 for 2019. Why is loyalty punished when it comes to Irish mortgages? Serial tech investor and Riverdeep founder Pat McDonagh has sold his shares in Cork-based video software company Digisoft as part of a management buyout. Riverdeep Interactive Learning was founded by Patrick McDonagh in 1995 & is located in Dublin, I reland. It is understood that after fees and foreign-exchange charges, Mr McDonagh is likely to net slightly more than $100m from the deal. The company designed, produced and published e-learning solutions and educational CD-Rom software for children and experienced rapid growth. He is one of the founders of the Riverdeep educational technology firm and is currently chairman of the Third Force e-learning company. The management buyout was led by Digisoft chief executive Fearghal Kelly, a former deputy head of technology for the BBC, who has been with the company since 2012. Pat McDonagh is a name that is perhaps more known in the west of Ireland than it is in other parts. “We have grown the business over the last few years to the pivot point that it is at today. Clients include Vodafone, Accesso, Pfizer and the Epic museum. According to well-placed sources, the company is on track to record a $90m profit this year. Exasperated by constant criticism from some American investors, Mr O'Callaghan first mooted an MBO to his board at a time when the shares were trading at 80c. There is one simple reason for this - the man … Inside Business with Ciaran Hancock - Dublin Bus CEO Ray Coyne on the future of transport in the city, Easy to follow guides to make technology simple, DJI FPV drone: Flying colours for an immersive first person view, Samsung Galaxy XCover 5: Easy to use and hard to break is the motto, Apple AirPods Max: Expensive price tag but unmatched headphone quality, Starcamp Club’s virtual St Patrick’s Day: Two hours of magic and more. Will the new first-time buyer plan push up house prices? Riverdeep Interactive Learning Ltd. was founded in Dublin, Ireland, in 1995 by Pat McDonagh. Education software group Riverdeep has been told that non-executive director Pat McDonagh is backing chief executive Barry O'Callaghan's bid to take the company private. He owned the site on which the school was built … He made more than £167m from sales of shares in … Mr O'Callaghan has paid Mr McDonagh almost $120m for his near-30pc stake to become the majority shareholder in the company, with a 59.4pc holding. In March 2001, at the height of the dot-com boom, he took Riverdeep to the market, selling 50m shares in a secondary placing a few months later to net $125m, or ?146m based on the prevailing exchange rate. Your Web Browser may be out of date. The company designed, produced and published e-learning solutions and educational CD-Rom software for children and experienced rapid growth. This is not Mr McDonagh's first Riverdeep pay-day. Read the leading stories from the world of business. The company's products are being used in more than 45,000 schools in over 20 countries worldwide. It provides interactive learning solutions in schools and homes. Aside from Mr O'Callaghan, 10 mainly American and British institutions own 30pc of the shares, management own 7pc, and a band of up to 40 individual shareholders own the remaining 3pc. His buyout consortium included Mr McDonagh, Alchemy Partners, the venture capital company founded by Pierce Casey, and MSD Capital, the American private equity arm of the Michael Dell family. Mr McDonagh is a former schoolteacher turned serial tech investor who has built up a multimillion-euro fortune from companies that include CBT Systems, Skillsoft and Riverdeep, as well as property deals. NTMA pulls Davy as bond dealer before auction, Ireland to have highest debt per head in Europe this year, GE close to selling aircraft leasing business to Dublin’s AerCap, Study highlights student vulnerability to online misinformation, Brighten up your stay at home experience with artwork from Behance, Oceans of learning when you dive into the marine website, Dive into Neil Gaiman’s Archive of Cool Stuff, Frequently asked questions about your digital subscription, Specially selected and available only to our subscribers, Exclusive offers, discounts and invitations, Explore the features of your subscription, Carefully curated selections of Irish Times writing, Sign up to get the stories you want delivered to your inbox, An exact digital replica of the printed paper, EU claims court errors in bid to overturn €13bn Apple tax judgment, Dublin-based blockchain banking joint venture raises €5.5m, Microsoft to create 200 digital sales jobs at its Dublin operation, Huawei to create 110 jobs and invest €80m in R&D, The depressing role of technology in the Trump years must be fixed, Galaxy S21: Ultra is star of the show with quad camera, Hollestic: Expert help and nutrition advice for expectant mothers, Proscenic P11: Hoovers and mops your floors in one fell swoop, More jobs expected as Google sets up safety engineering centre locally, Draper Esprit has led $20m investment in Riverlane, ‘Global cybersecurity crisis’ builds from attack on Microsoft email software, Return of BBC Three shows that linear TV isn’t quite dead yet, RTÉ confirm presenter Eoghan McDermott will not return to radio show. He formerly led Riverdeep for a decade, later known as EMPG and HMH. The deal is to be. Patrick "Pat" McDonagh is the founder and owner of Supermac's, a major Irish fast food franchiser.