Identity management technology company GB Group has acquired address management company Capscan for £11.2m.
The move comes as part of GB Group's plan to double its market share in the public sector.
Over the last six months GB Group has undergone three acquisitions in the last six months. It estimates its acquisitions should increase the revenue of GB Group to around £35m from £24m a year ago.
Richard Law, GB Group CEO, said the company's public sector revenue is about 10%, but as a result of the acquisitions the company hopes to grow this to 20%.
"We have seen considerable increase in the level of interest particularly for fraud and efficiency, so our pipeline is getting bigger. As the public sector focuses on savings, there's a gap that needs to be filled with automation," Law said.
Law said the company also had a pipeline of new work through the government's on-going work around identity assurance, the process by which the government intends to verify the identity of citizens looking to access its online services.
The acquisition adds 54 people, technology and a client portfolio of more than 1,800 customers, which includes HMRC, ASOS, Ocado and Virgin Wines.