AGILISYS, the York-based technology and business process service provider, has finally broken free from the troubled Jarvis group - and at the same time announced a new £60 million e-government contract.

Agilysis was originally formed out of Jarvis' IT department when it was based at Jarvis House, York.

Now the Netdecisions Group, the IT investor linked to Agilysis, has bought out Jarvis' 40 per cent stake, although the company will continue to meet Jarvis' IT needs at offices in Meridian2, off Blossom Street, York.

The new contract, announced today, is a seven year deal to provide the whole of Cumbria with integrated E-government computer services.

Earlier, Cumbria County Council had been reluctant to sign. A spokesperson for Agilisys said: "There were difficulties with Jarvis being a guarantor.

"That is now no longer an issue."

The two announcements come as Agilysis is hard at work on a recently-signed £7.4 million ten-year ICT partnership with North Yorkshire County Council and Hambleton District Council, providing 500,000 Yorkshire people with e-government.

The company has also built up a strong private sector client base, with contracts awarded by McDonald's Cendant, First National Bank and Anglo Irish Bank.

It now employs 900 people of whom 250 are based in offices at Hudson House and Toft Green, York, and the remainder at two offices in Ireland, a base in Mumbai, India, and in Fareham, Hampshire and Banbury, Oxfordshire.

Charles Mindenhall, chief executive of Agilisys, said: "This is the final step in the process of integrating Agilisys Ltd as a wholly owned entity. The Agilisys business has become a strong force in the UK public and private sectors and we are looking forward to continued growth under the complete ownership of the Netdecisions Group."

Meanwhile, Jarvis has completed the final pieces in a multi-million sell-off, which included selling its interests in rail tube lines and extending its financing arrangements until March next year.

Late last year, Jarvis sold off rail property in York and the lease on its company HQ to raise cash to settle increasing debts - instead moving into smaller offices at Meridian 2.

Network Rail bought the lease at Jarvis House and other property across the city, including York Central, in a £25 million deal.

Updated: 09:52 Thursday, March 24, 2005