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BT has acquired an IT company in a move intended to boost its presence in the business internet sector.

BT Business - the division of the firm which provides broadband, voice and IT services to 1.5 million small to medium businesses - has acquired Lynx Technology, which specialises in consulting, technology and outsourcing.

Bill Murphy, managing director of BT Business, said: "Lynx Technology is a very impressive IT services business, with a proven track record of understanding and meeting the needs of SMEs. Small and medium-sized companies need to focus on their core business."

News of the deal follows BT's acquisition of Basilica Computing, a provider of IT solutions to business clients, for £24 million in August this year.

Founded in 1973, Lynx recorded sales of £47 million during 2006 and employs over 500 staff, 200 of whom are field engineers as well as 50 consultants and 100 service and support staff.

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