Software provider Marlborough Stirling has announced an £87 million deal to boost its presence in the financial services sector.

The Brighton-based company is to acquire Exchange FS, which provides support services to the personal finance and insurance sectors.

Shares in both companies rose following news of the deal, with Exchange rising 19 per cent and Marlborough Stirling three per cent up in early trading.

Marlborough chairman Huw Evans said the tie-up opened major new markets for the company to sell its products.

He said: "This acquisition is an important step in our strategy of becoming the leading provider of software and services in our chosen markets, with significant opportunities for cross-selling."

Marlborough provides software and services to the mortgage, life and pensions market and has Alliance and Leicester and AXA Sun Life among its clients.

The deal, which needs the approval of shareholders, came as the two companies issued results for the six months to June 30.

Marlborough, which became a FTSE 250 company shortly after listing on the London Stock Exchange in April, said firms' link-up turnover had risen 48 per cent to £33.7 million, with pre-tax profits ahead 55 per cent at £7.1 million.

Marlborough's overall pre-tax profit figure rose to £5 million from £4.6 million last year.

The group said its outlook for the remainder of the year was positive.

Chief executive Graham Coxell said: "Our existing order book means that we continue to look forward to the future with confidence."

Exchange FS, which sold its moneyextra.com financial services business in December, includes Friends Provident and Standard Life among its clients.

The company, based in Surrey, saw revenue lift 27 per cent on a like-forlike basis, with operating profits from continuing businesses currently at £1.2 million.

Pre-tax losses were £3.8 million, compared with £17.9 million last year, when figures were dented by reorganisation costs.