GRAHAM Wylie's latest venture, Technology Services Group (TSG), has expanded into Scotland.

The Sage founder's new business has made several acquisitions since he bought and merged Joynson, based in Newcastle, and CPA Systems, based on Teesside, to form TSG.

The company has bought Edinburgh IT services business Nordic Data.

Details of the deal have not been made public, but it gives the company 500 customers in and around the Scottish capital.

Nordic Data acts as partner for Sage and HP/Compaq.

Its customers include Edinburgh Festival Fringe Society, Stagecoach Holdings, Glenrath Farms, The Royal Society of Edinburgh, Edinburgh Zoo, Edinburgh Chamber of Commerce, Scottish Financial Enterprise, and Adam and Company. Mr Wylie has been aware of Nordic Data for many years because it is a customer of Sage.

He said: "We are delighted that Nordic Data, one of the largest Sage resellers in Scotland, is now part of TSG. Nordic is a well-respected, well-run business, with highly skilled people, which is why their service standards are extremely high.

"Our aim is to make TSG the IT supplier of choice in the Edinburgh region. Nordic Data is the cornerstone of this strategy and we have plans to expand the business in the near future."

The deal means TSG has offices in Newcastle, Middlesbrough, Sheffield, Manchester and Edinburgh. The group employs more than 120 staff supporting the IT needs of more than 5,000 small and medium-sized businesses.

Norman Weibye, Nordic Data managing director, said he had rejected a number of bids for the company in the past, but could not refuse the TSG offer.

He said: "It is good to have the strength of somebody rich behind you and somebody who understands the industry."

But the decision to sell was not easy.

Mr Weibye said: "I set it up from scratch. This company is older than my eldest child. It is an emotional wrench, but the trick to being successful in business is to know when to stay and when to go."

UNW negotiated the transaction on behalf of TSG with Sinton and Company leading the legal team. Lindsays WS Solicitors advised Nordic Data.