LAGAN TECHNOLOGIES, one of Northern Ireland’s fastest growing software companies, has been acquired by a California-based group in a deal estimated to be worth more than £29 million.

Kana Software, which is owned by Accel-KKR, a technology-focused private equity firm, said a “definitive agreement” has been signed between the two companies.

The terms of the transaction have not been made public.

Belfast is set to become Kana’s European headquarters as a result of the buy over, a move that has the potential to create up to 100 new jobs at Lagan’s headquarters in the city.

Lagan Technologies, which was founded in 1994, is a privately owned company backed by institutional and private stakeholders. One of its earliest investors was Belfast-based venture capital fund manager Crescent Capital.

The Northern Ireland company specialises in G2C (government to citizen) technology and works with more than 200 state and local government agencies from Toronto to East Timor.

Kana Software provides a range of customer-focused service solutions including e-mail, chat, call centres, and web self-service to 600 large scale companies such as American Express, eBay and Gap.

The American group said the Lagan acquisition created an ideal opportunity to capitalise on the growing market in the government sector.

Kana’s chief executive Mark Duffell said the combined company would focus its energies on the government and public sectors.

Des Speed, chief executive of Lagan Technologies, believes the acquisition is a positive development for the Belfast company.

“Joining Kana will be highly beneficial for our global customer base, broadening the skills we can draw on and accelerating product development,” said Mr Speed.

Lagan, which employs 160 people, has grown substantially in recent years.