Advanced Computer Software Group has acquired Compass Computer Consultants, and education sector software provider, for £14.5m.
Compass, based in Cheshire, provides fully integrated record management and customer relationship (CRM) systems which are used by more than 80% of UK colleges and increasingly by the Learning and Skills Council.
Compass will be integrated into the Group's Business Solutions division, where it will complement existing education software solutions for local authorities, schools, academies and higher and further education providers.
Vin Murria, CEO, Advanced Computer Software Group, said: "This is an important acquisition for Advanced because it expands our presence within the education software sector across the UK and Ireland.
"Since the launch of its first college-based software solution, ProAchieve, in 1999, Compass has earned a reputation for providing a range of solutions to meet the challenges faced by further education providers."
Compass is the second education software company acquired by Advanced. The Group acquired management information system provider, Serco Learning in December 2012. Advanced now provides technology solutions to more than 2,000 educational institutions throughout the UK and across the world.