The Ireland Strategic Investment Fund (ISIF) is to invest €19m (£17m) in Kaseya, enabling the IT management vendor to create 130 jobs in Ireland.
The expanded headcount will be added to Kaseya's existing Dublin-based operations, which employs approximately 30 people.
It will also launch a collaboration programme with third-level universities and institutes of technology in Ireland.
The investment is part of a wider funding round that will see Kaseya, which is majority owned by global software investment fund Insight Venture Partners, raise over €38m.
ISIF separately announced last month a $100m capital commitment in a global software fund managed by Insight.
"This investment promises a significant economic impact," said Fergal McAleavey, head of private equity at ISIF. "It will bring high-quality software jobs and further cement Ireland as the destination of choice for global software companies seeking an EU presence.
"We are confident that Kaseya will deliver a strong commercial return on our investment to complement our economic impact objectives. This transaction further strengthens our excellent relationship with Insight, one of the world's biggest software investors," added McAleavey.
Fred Voccola, CEO of Kaseya, said the firm was delighted to continue to grow its Irish presence and to team up with ISIF as an investment partner.
"Ireland is a great place to continue to develop our industry-leading software solutions. Our contribution to Ireland's vibrant, dynamic software sector will help to bolster the country's growing reputation as an IT leader, while creating significant additional value for our investors," he added.
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