IT services company RDF Group has kick-started its aggressive expansion strategy by snapping up a Sussex-based counterpart for £200,000.

RDF, based in Bartholomews, Brighton, has bought Horshambased Aqua Resources Group in a move expected to result in costsavings of £300,000 a year.

RDF chief executive David Wood told Business in December the company was looking to make "two or three" acquisitions in the first quarter of 2007.

The purchase of Aqua is expected to start boosting RDF's earnings in 2008.

Aqua, which has 15 full-time staff and 60 contractors, has a number of household-name clients such as Lloyds TSB, VISA, Barclaycard and First Data International.

In the last four months of 2006 Aqua's sales almost hit the £2 million mark - the same amount it accrued in revenue for the full year ending August 31.

The acquisition of Aqua is expected to provide RDF with greater market penetration in the IT contracting and permanent employee placement market.

Mr Wood said: "This is an exciting time for the group and a significant milestone in our development.

"RDF is committed to continuous growth and we are very pleased to have concluded our first acquisition.

"I have known the management and many staff at Aqua for a long time. I am confident their abilities, together with our own considerable strengths, people and product portfolio, will make us an even stronger team."

RDF was founded in 1994. From a standing start, the company currently has a turnover in excess of £20 million and 300 staff across Britain, including 120 in Brighton.

Since 2005, sales and profits have increased by 100 per cent, mainly on the back of lucrative contract wins and new office openings in Bristol and London.

The launch of a specialist recruitment division, RDF Resources, 18 months ago has helped boost sales, while profits have been driven by the group's core business.