Two of the Republic's leading computer services firms - PFH Computers and CK Business Electronics - have merged.

The enlarged company, PFH Technology Group, will have turnover in excess of €36 million and employ 140 people at offices in Dublin, Galway and Cork.

"The two companies were ideal candidates for a merger, providing similar technologies to different market sectors from separate geographic locations," said Paul Hourican, who will be managing director of the group.

Both are providers of Microsoft Windows-based products and services. PFH concentrates on the hospitality, pharmaceutical and education sectors, while CK serves the health and manufacturing sectors.

CK, the larger of the two firms, was established in 1980, while Cork-based PFH set up in 1987. The merged group will be headquartered in Cork.

Apart from Mr Hourican, who comes from PFH, the directors will include Paul O'Callaghan and Martin Kirrane, who come from CK Electronics, and PFH's John Hickey. Mr O'Callaghan will be general manager of the Dublin and Galway offices.

Mr Hourican said the company would be in a stronger position to compete for business in a increasingly competitive market.