It is understood that chief executive Tom Tuite is leading the MBO, and that the deal is close to being finalised.

Founded in 1994 by colourful Monaghan-born telecoms entrepreneur Tom McCabe, Swiftcall was established to provide a low-cost 'no frills' alternative to Eircom's then monopoly in the Irish telephony market.

At one stage, McCabe was planning to float the company on the Nasdaq, but it was eventually sold in 1998 to Japanese telco KDD, now KDDI. McCabe was forced to sell Swiftcall to KDD for 508,000 in 1997 to save it from collapsing under crippling debts estimated to be about 25.4m.

KDD had originally invested in Swiftcall the previous year in anticipation of the planned flotation.

McCabe's subsequent ventures have included forays into internet retailing, internet telephony and film-making.

Swiftcall now employs around 45 people and is understood to have around 15,000 residential account holders in Ireland. It promises Irish residential customers savings up of up to 80% on the cost of their monthly international phone bill.