THE co-founder of software company Sage last night announced his latest IT venture had bought another business.

Graham Wylie's Technology Services Group (TSG), which he launched after retiring from Sage in 2003, has bought PJ Howlett Business Systems, in Preston, Lancashire.

The acquisition increases the customer base for TSG's partner, software producer Pegasus, into the North-West and Cumbria, and allows TSG to expand further across the UK.

It is the latest in a series of purchases by TSG, a business software retailer based in Newcastle, bringing its total number of acquisitions to about a dozen.

PJ Howlett Business Systems has operated as an independent retailer in the North-West since 1979. It specialises in hardware, software, training and system maintenance and mainly deals with small and medium-sized businesses.

Staff will join TSG North-West, remaining in their existing premises.

Simon Cook, regional managing director of TSG North-West said: "This acquisition helps to further consolidate our position as the leading IT service provider in the North-West, and also provides expertise in the Pegasus software market.

"The new TSG Preston office will allow us to expand our services to Carlisle and beyond."

TSG employs 435 staff across the UK. Its turnover is more than £38m a year. It provides IT solutions to nearly 10,000 small and medium-sized businesses nationwide.

Last month, Mr Wylie gave his strongest hint yet that TSG would follow Sage to the stock exchange.

He has invested £25m in TSG since its inception and is working to make it a national brand on a par with Sage.

TSG already had five divisions in the North - including Teesside - and in Scotland. The Preston office brings that to six.

The group recently raised a £25m debt facility with Lloyds TSB, looking at the Midlands for its next area for expansion.

Despite the company being "cash rich", Mr Wylie said he was a fan of flotation and may look to the City in the future.

Accountancy software maker Sage, which he founded in 1981, is the only technology stock remaining in the FTSE 100.

It employs 8,000 people worldwide, including 1,200 at its head office in Newcastle Great Park.