CR2, a Dublin-based banking software group, has completed a major expansion with the acquisition of British software group Interlink for €12.9 million (£10.1 million). The enlarged group will employ 180 people, more than doubling CR2's size.

CR2 has funded the acquisition by raising a further $8 million (€8.4 million) from three venture capital companies which had previously agreed to provide $10.5 million in finance. Both finance packages were provided by Belgian investment group GIMV, Alpinvest and ACT Venture Capital.

The deal with Interlink involves both cash and equity, although a spokesperson was unable to say what stake the Interlink vendors would have in the merged group. She added that CR2 had no plans for a stock market flotation "at this stage". But market sources believe CR2 is a likely candidate for an IPO within the next few years.

Interlink, which trades as Funds Switching Technologies, provides banking software for ATM and point-of-sale devices, electronic payments and card management. It has subsidiaries in India, Africa, the Middle East and the Asia/Pacific rim. Its regional network covers 90 customers in more than 70 countries.

According to CR2, the Interlink product range complements its own Internet banking, especially its Bankworld product which allows banks to deliver services via the Internet and WAP-enabled mobile phones.

CR2 joint chief executive Mr Ron Downey said: "Our goal is to be the world's leading provider of total channel management solutions to the financial services industry.

"The acquisition of Interlink is an important step in this direction and significantly adds to our global reach as an international organisation."

Mr Downey added: "The acquisition more than doubles our existing workforce to 180 personnel. Dublin will be the head office, with some 100 Interlink staff based globally.

"CR2 will invest substantially in both product research and development."