Advanced has acquired Hudman, developer of CentralERP, a cloud-based SaaS ERP system.
The move is expected to extend Advanced's reach into the SME business sector.
Gordon Wilson, CEO at Advanced, said: "This acquisition represents the first public step in the company's next chapter.
"Our business transformation over the last 12-18 months means we are well placed to focus on accelerating our growth and extending our delivery of solutions in the cloud, which represents the single biggest opportunity for us and our customers.
"Cloud technology is fast becoming the right choice for many organisations to drive efficiencies, manage costs, innovate and grow. It's important we help them embrace the cloud to secure this competitive edge."
David James, CEO at Hudman Solutions, added: "Our cloud first approach complements Advanced's strategy and its growth plans."
Jon Wrennall, CTO at Advanced, noted: "We're seeing an increasing number of newer businesses that either have a cloud-first strategy - in that they've never invested in a fully integrated on-premise infrastructure - or want to move quickly to the cloud to take advantage of all the benefits that make SaaS solutions so attractive.
"Integrating Hudman's technology and skill set into our existing product roadmap will ensure we support smaller organisations to positively disrupt their business and make a difference to the services they offer to their customers."