Civica UK has acquired the trade and assets of small Cambridgeshire-based developer PTC Software for an undisclosed sum.
Founded in 1985, PTC builds enterprise tools that monitor and control application environments including automated service level reporting, management and scheduling for public sector and commercial customers.
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In a statement issued today, Civica chief executive Simon Downing said the bolt on business will bring "specialist expertise".
"[This] will help our customers to extract the most value from their investment in technology and to manage increasingly complex IT infrastructure efficiently and effectively," he said.
Both firms have already worked together for customers including the Royal Borough of Kensington and Chelsea, and Sunderland City Council.
The Group supplies 95% of local authorities in Great Britain and roughly 200 social housing providers.
"With essential public services dependent on the performance of underlying applications and infrastructure, automated service level monitoring, reporting and management is increasingly imperative," said PTC boss Richard Bradbrook.
PTC filed abbreviated accounts for the year to September 2009 suggesting the company had a turnover less than £5m, which revealed negative asset value of £62,000.