The pair will be paid an initial cash consideration of 3.7m and earn-out of 4m should profit targets be met between 2008 and 2010. A further consideration of 2.3m will be payable should these targets be exceeded.

Managing director Nessa Butler will earn 3.2m from the initial consideration and could gain up to 8.8m if targets are exceeded. McSharry will net 440,000 from the initial payment and could see his take rise to 1.2m.

Butler had a 50% stake in Rescon, while the remainder was held by a firm called Ainstow, owned by Butler and McSharry.

Butler and other senior management at the company have given a commitment to Harvey Nash to remain on board for at least three years. McSharry was a non-executive director and will cease his involvement with the company.

Rescon last year reported pre-tax profit of 800,000 on the back of turnover of 7.2m. The firm had gross assets of 2.8m.

Harvey Nash has recruitment and IT outsourcing businesses and chief executive Albert Ellis characterised the Irish IT market as relatively underdeveloped, which led it to pursue the acquisition.