A BOOMING North Yorkshire software group plans to spend nearly £2.38 million on buying a Canadian technology firm.

ActiveIntranet Plc, based in Victoria Avenue, Harrogate, has developed a suite of software products based around enterprise knowledge systems designed to allow for fast and easy deployment of intranets - and it has been on the acquisition trail.

It has now agreed to buy CIRI LAB Inc in Ontario and is seeking shareholder approval to pay the price - 500,000 ActiveIntranet ordinary shares - £2.1 million at the current price of £4.20p - plus £100,000 in cash and US$250,000 (about £178,000) for use of the Canadian firm's licensed document management technology. CIRI will continue to trade as a wholly-owned subsidiary.

The Harrogate group which now employs 80 people at its HQ in Vunderbilt Court, proved itself the investor's darling in March when it was announced that its offer for subscription of 1.5 million ordinary shares at £1.40 closed three weeks ahead of schedule - seven times oversubscribed. Later that month a further 350,000 ordinary shares were placed at £3 per ordinary share.

In July ActiveIntranet announced the acquisition of LAN-Team, the sales and support office for its products in German speaking Europe and the Benelux countries.

Phil Cox, chairman of ActiveIntranet said: "CIRI has some important new technologies which will further enhance our product offering both in its home market but more importantly in the European markets.

"With the North American market offering significant opportunities for us to expand our sales base more rapidly, I believe this is an excellent overseas acquisition."