ONE award-winning North Yorkshire software firm has announced plans to take over another in a £9 million deal which could mean some job losses.

Coda of Harrogate has signalled to the London Stock Exchange its plan to swallow up its near-neighbour, the struggling £4.5 million- turnover SquareSum plc. The takeover should be completed by January.

SquareSum, whose half-year figures are likely to show a loss, recently closed its Uxbridge office making four people redundant and announced future business cuts of about 25 per cent.

Coda will ultimately sell SquareSum's headquarters at Follifoot Hall in Pannal Road, Follifoot, near Harrogate and most of its staff - perhaps 25 out of the 30 - will join the 250 workers at Coda HQ in Cardale Park, Beckwith Head Road, Harrogate, just two miles away.

David Turner, Coda's international marketing director, said: "Had we not agreed to take over SquareSum, its job losses may have been even greater.

"As it is we have been able to transfer most of its development and support staff plus some development jobs for which we were in any case recruiting."

He stressed that SquareSum had a very good product, which added 250 Dream clients to the more than 2,000 Coda clients in the UK and abroad.

Updated: 12:18 Wednesday, December 11, 2002