IS Solutions, which also provides systems support services to the public and private sectors, has agreed to buy Surrey-based Chapter26.

The deal will cost IS more than £700,000 in cash and shares, which could rise to some £1.2 million if agreed financial targets are achieved by July next year.

IS managing director John Lythall said the acquisition will extend the company’s offering into the small business market. “The complementary client bases of the two operations should also lead to increased sales for the combined operation.”

Chapter26’s content management systems enable companies to create, manage, and archive the structured and unstructured business information, such as email and video.

In the past year, Chapter26 generated unaudited pre-tax profits of £112,000 from sales of £1.93 million.