SOFTWARE firm Sage yesterday strengthened its position in Switzerland with a £7.5m acquisition and said it was trading in line with expectations.

The North-East plc said it had paid cash for Pro-Concept SA - the largest mid-market supplier of enterprise resource planning (ERP) software in French-speaking Switzerland.

And in a trading update, the Newcastle group said financial results for the six months to March 31 should be in line with analyst forecasts, with pre-tax profits expected to reach £122m - up by more than £8m on last year.

Sage said the acquisition of Pro-Concept was an "important step" in establishing Sage's leading market position in Switzerland.

The group wants to expand what Pro-Concept has to offer into the German-speaking part of the country.

Paul Walker, Sage chief executive, said: "The acquisition significantly strengthens our market position in Switzerland and gives us the opportunity to expand Pro-Concept's product penetration into German-speaking Switzerland.

"With Pro-Concept, Sage is now a leading supplier of mid-market products in Switzerland, with industry-specific solutions for the key industries of watch-making and micro-electronics."

Pro-Concept was established in 1987 and has grown into a £9.5m business generating operating profits of £826,000. A leading supplier of business management software, the firm has more than 350 customers, including Tag Heuer and Cartier in the watch industry to Kronenbourg Suisse and Aéroport International de Geneve in distribution.

Sage was formed in 1981 and floated on the London Stock Exchange in 1989. Today, it is a leading global supplier of business management software solutions, employing more than 13,000 people worldwide.

Since 2000, the group, which has its headquarters at North Park, Newcastle, has made 20 major acquisitions worth more than£1.4bn.

Sage made a further nine acquisitions in the 1990s.

According to current forecasts, Sage is expected to unveil revenues of £586m and pre-tax profits of £122m for the six months to March 31.

Analysts predicts revenues of £1.18bn and pre-tax profits of £254m for the full year to September 30.