CST owner Lynx Holdings has paid an initial #2.66 million for Sheffield-based software company Quadra.
The deal includes provision for an extra payment of #665,000 if Quadra makes more than #700,000 profit for the year ended 31 January 1997.
Quadra, which employs about 50 people, operates in the small building society market, where it hopes to cash in on problems caused by the millennium bug.
Richard Last, Lynx chief executive, said: 'I am delighted that Quadra is joining Lynx. Quadra's speciality in providing software to smaller lenders complements Lynx's existing client base of larger lenders.'
Lynx will merge the firm with its existing financial software and systems businesses, which will form the Lynx financial systems division. It will be headed by Ken Liscombe, currently deputy chairman of Lynx's human resource software company Heywood and Partners.
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