Software company Proactis is to buy public sector e-procurement systems and services provider Millstream Associates for £15.5m.
Proactis said it believed that Aberdeen-based Millstream would complement its existing business and would help it grow organically.
Millstream provides e-procurement solutions to more than 4,000 customers for its Tenders Direct product and has more than 50 public sector customers and more than 500 contributors for its bespoke portals and myTenders products.
Proactis, which provides spend control software, said the acquisition would broaden its product range, expand its customer base and provide cross-sell opportunities among customer bases of both companies.
Rod Jones, Proactis chief executive, said: “The acquisition of Millstream represents a significant step in our growth strategy, substantially increasing the scale of the group.
“The acquisition broadens both the product offering and the customer base on the buy side of the procurement process while also bringing scale of operation on the strategically important supply side of the procurement process.”
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