Software company Northbrook Technology is investing £23.5 million (€35 million) in the expansion of its Northern Ireland operation. The move will lead to 400 new software development jobs in Belfast and Derry.

Northbrook Technology specialises in providing technology and business solutions to its US parent company, the Allstate Corporation. The company said it would use the investment to expand its software development function and to capitalise on higher value market opportunities.

Invest Northern Ireland, the industrial support agency, announced yesterday that it would provide £5.6 million to support Northbrook's expansion. According to Invest NI, the creation of 400 new jobs is expected to "inject" almost £10 million in salaries to the local economy each year. Bro McFerran, managing director of Northbrook Technology, said yesterday: "This investment and the continued support from Invest NI will enable Northbrook to carry out higher value software development and will expand our range of products and services.

"We are pleased that our continued partnership with Invest NI has resulted in our making a further investment in the local economy," Mr MrFerran said.

"Only by increased investment in people and skills can we sustain our position as a leading player in an increasingly competitive global market."

The chairman of Invest NI, Stephen Kingon, welcomed the expansion, which he said "underpins Northbrook's long-term commitment to Northern Ireland and sends a clear message that Northern Ireland can be a serious contender in the global software market".

Northbrook established its first office in Belfast in 1999 and currently employs 1,400 people in Belfast, Derry and Strabane.