Sanderson chairman Christopher Winn said he had bought the browser-based software developer so that the business could grow more quickly under the Sanderson banner.

Winn said two to three further acquisitions were also being discussed. The deal involves a 750,000 cash payment plus the issue of 375,000 10p shares valued at 245,625, based on the firm's closing share price of 65.5p before 7 July. A further 750,000 is payable in cash depending on results up to 31 October 2007.

The acquisition is the first since Sanderson's flotation on the Alternative Investment Market in 2004.

Batley-based Progressive employs 22 staff, all of whom will transfer with the business, which will now be called Sanderson PCS. Founder Robert Davison owns Progressive and will continue as managing director as well as becoming a significant shareholder in Sanderson.
Progressive reported a turnover of 1.37m for the year to 31 October 2004.

Meanwhile, specialist book printer Butler and Tanner Group has awarded Sanderson with a contract to supply the firm with its Unity print management system. Unity will help Butler & Tanner to generate cost savings, improve supplier contact and improve performance.