Date Uploaded: 28/10/2016
The members of the Irish Management Institute will vote today on a proposed merger with UCC which was originally scheduled to go ahead seven years ago.
The merger, which is expected to be ratified, will see UCC borrow €18m from AIB to pay for the IMI’s campus in Sandyford, Co Dublin, and invest a further €2m in the facility at a time when third-level funding is in crisis.
The merger was originally to go ahead seven years ago but was postponed because the IMI got into severe financial difficulty as a result of the recession. However, as the institute has come back into profit in recent years, the merger is back on track.
The IMI provides customised training for the corporate world. UCC sees it as a fit for its business school.
“It is the strategic intent of UCC to develop a world-class reputation and capability in all its aspects of business education,” according to a statement from the college. “The merger with the IMI is a crucial part of that strategy.”
The merger, which in reality is a takeover by the university, is unusual in that it involves a public education facility taking over a private entity.
There has been little comment on the deal in the education sector, but there appears to be confusion between the two entities as to who will have responsibility for pensions for IMI staff.
The IMI confirmed to the Irish Examiner that its board had recommended to members to vote in favour of the merger today.
“This proposal follows on from five years of a successful strategic alliance with UCC and two years of extensive merger negotiations,” it said.
Journalist: Michael Clifford