TWO innovative UK motor dealership software companies, one of which is based in Knaresborough, have merged.

The deal, worth £6 million, was brokered by York-based accountants Garbutt & Elliott.

Universal Training Co Ltd (UTC) of Knaresborough has joined forces with q.bit Systems Ltd, of Berkhamsted, in Hertfordshire, to create a new company called q.bit (Holdings) Ltd.

The new company will now provide a range of software and data products for motor dealers, designed to improve efficiency, cut costs and provide value for money for both car dealers and their customers.

UTC provides a deal optimisation software programme called Track, which enables car dealers to swiftly compile a comprehensive financial package for customers buying cars, while q.bit provides a series of cutting edge software and data products which allow dealers to efficiently administer their business.

Nigel Pates, managing director of q.bit, said: "The two companies have worked together on an informal basis for a couple of years now and it was clear that there was a synergy between us. It seemed natural to join forces and provide a comprehensive product.

"Our new company will deliver winning new applications that will power more and more of the industry's major players.

"Because we are constantly in touch with our dealers on the ground where it matters, we have developed an extensive suite of integrated solutions for our clients, spanning a wide range of motor industry needs.

"We will create efficient processes, maximise profits and maximise opportunity."

Gary Cuthbert, managing director of UTC, said: "We use old-fashioned business principles to create a modern software service. We have a loyal client base, including dealers in Yorkshire such as the JCT 600 Group and Perrys, along with many others such as the CarLand Group and Daimler Chrysler who appreciate the focused service we provide. Joining forces with q.bit will enable us to roll out a more comprehensive, efficient and attractive package."

Russell Turner, of Garbutt and Elliott's York office, said: "We were the lead financial adviser in this complex deal. There was clearly a synergy between the two companies, but the negotiations were complex and tax-planning issues had to be addressed.

"Ultimately, we were delighted to achieve a financial structure and tax-efficient solution which satisfied both parties."

Legal advice was provided by the York office of solicitors Ashworth & Co.

Updated: 10:45 Tuesday, March 14, 2006