BUSINESS software group Sage has agreed to pay £78.4m for French rival Adonix.

Sage, which employs 1,200 staff at its Newcastle headquarters, is expected to complete its buyout of the business management software firm within a week.

Adonix, which has 5,000 customers, made operating profits of £9.6m last year.

In May, Sage, which employs 8,000 people worldwide, unveiled half-year pre-tax profits of £100.6m.

l An IT solutions company launched two years ago by the co-founder of software company Sage has made its 17th acquisition and continued its expansion in the Midlands.

Graham Wylie's Technology Services Group (TSG) has bought Birmingham-based IT support business Open Systems Services, which specialises in Pegasus software.

The acquisition was made using funding from the £25m Lloyds TSB corporate facility agreed earlier in the year.