Application Developer Covid NearForm Redefines Company Structure

NearForm, the software company that developed the technology used in the Health Service Executive’s Covid contact finder app, overhauled its corporate structure by creating a parent company based in Delaware, United States.

Newly filed accounts filed in Dublin for NearForm Limited and its subsidiaries show it was acquired by Delaware-based NearForm Holdings in December for an undisclosed amount.

The move came shortly before the company secured a multi-million dollar investment from Columbia Capital, headquartered in Washington DC.

Delaware is one of the many states that launched applications based on NearForm technology last year. The state has in recent years become a place for those looking to take advantage of the so-called “Delaware loophole,” which allows companies to minimize their tax bills while not disclosing beneficial owners. As a result, nearly half of all public corporations in the United States are incorporated in the state.

NearForm reported a 9.5% increase in revenue in 2020 to € 19.9 million, from € 18.2 million a year earlier.

The company develops business software and uses cloud computing to create business platforms for clients such as the New York Times, IBM, Microsoft and Condé Nast.

Pre-tax profit increased to 1.57 million euros from 1.2 million euros as the company paid a dividend of 1.33 million euros during the year.

The gross margin was in line with the previous year, although in percentage terms it fell from 45.9 percent to 41.8 percent.

NearForm earlier this year named former Accenture director Ciaran Cosgrave as managing director, while co-founder Cian Ó Maidín became company president.

Technology

Founded in 2011 by Mr. Ó Maidín and Richard Rodgers, the developer has become well known for the technology he has developed for the HSE, which has over 1.3 million active users. This technology, which is based on open source software, has since been adopted for use in several other jurisdictions, including four US states.

A breakdown of the 2020 turnover shows that only 3.5 million euros of turnover comes from activities in the Republic.

At the end of last year, NearForm said it had net assets of 8.2 million euros, a “strong cash position, increased by 2.4 million euros and no debt.”

Personnel costs rose sharply from 9.8 million euros to 11.09 million euros, although the headcount remained stable at just over 90.