A TECHNOLOGY firm is continuing its expansion after buying a fellow IT company in a £10m deal.

Onyx Group, which has its headquarters in Stockton, has acquired Knowledge IT.

Bosses say the deal for Knowledge, based near Washington, Wearside, gives Onyx the North-East's largest IT and services organisation, employing more than 170 staff.

They added it takes Onyx closer to achieving its goal of becoming a £100m revenue business in the next five years.

Onyx, celebrating its 20th anniversary this year, has more than 200 customers, with its data centres and cloud computing provision providing IT support for a number of companies, such as furniture retailer DFS and car repair firm Kwik Fit.

It also manages IT for Edinburgh Airport, and has data centres in Middlesbrough and Newcastle, as well as sites in Edinburgh, Glasgow and Sheffield.

Cloud services allow companies to order IT from internet specialists when they need it, rather than investing in computer infrastructure.

Neil Stephenson, Onyx chief executive, previously told The Northern Echo it wanted to continue its growth, and said the Knowledge deal represented a significant expansion.

He said: “Over the past two years, customers have been asking us to manage their entire IT infrastructure, as well as providing resilient solutions to complex cloud and hosting requirements.

“The Knowledge IT team has a great reputation for delivering these services and this deal will make the Onyx proposition and reach, stronger for both sets of customers.

“The 20 years feels like yesterday and we have achieved so much in that time.

“But we want to keep building the business and key to that is all about investing for the long-term.

“A technology company like us adds a lot of value to the economy and also benefits the region greatly because of the high-skilled quality graduate jobs we are providing.

“We are always looking for good people and looking to grow.”

George Sanger, Knowledge IT’s managing director, added: “Onyx, like Knowledge IT, has a reputation for providing outstanding customer support.

“We welcome the opportunity to share our expertise to help Onyx build on their achievements and grow the enlarged business.”