SX3, the logistics management subsidiary of the Viridian Group, has acquired UK-based First Software group for an undisclosed sum.

First Software is a supplier of applications software to the UK government and also has a presence in Australia, Hong Kong and Canada. Its product range includes revenue collection, benefit payment and housing management systems, based on Oracle database and open system technologies.

Mr Nigel Wilson, chairman of Sx3, said the acquisition underpinned the business strategy of the company. It is seeking to exploit the growing e-government market place.

Sx3 made two separate acquisitions earlier in May including SCP in Northern Ireland, which supplies software to local authorities and XBS in Newcastle Upon Tyne.

Mr Philip Hollobone, an analyst with West-LB Panmure in London, said the company's strategy of acquisition was well thought-out and the company is likely to carry on acquiring.

The acquisition of First Software brings Sx3's combined workforce to over 1,000 with revenue in excess of £100 million per year.

Another of the Viridian Group's subsidiaries, tele nevada.com, a joint venture with the UK telecoms group Energis, is understood to be close to finalising a deal to acquire the Dublin-based telecommunications group, Stentor.

This acquisition would give the company a foothold in the Republic's market place.