Brighton-based Mistral Internet has new owners, following a multi-million pound investment from Digital Future Virtual IT.

Digital Future is a Southampton-based information technology services company.

Mistral said customers could expect business as usual after the deal but hinted the cash injection could be used to fund future acquisitions.

It would also use the investment to offer a broader product portfolio and increased support.

In recent months, the internet service provider (ISP)

has bucked the trend in its embattled industry, growing the business and exceeding its sales targets.

Chief executive Karl Robinson said: "Mistral has benefited from substantial growth in the past year and this additional funding and expertise will help sustain its growth rate and maintain the infrastructure necessary to meet growing customer demands.

"The financial support means we are able to expand our product portfolio and strengthen our existing brand. We look forward to continuing our service, while relishing the opportunity to expand the business in new areas.

"It is business as usual but with a bright and secure future."

Mistral described the transaction as a winning formula for both companies and said they would work together on future collaborative deals.

It would be announcing new products over the next few months, including a new version of virtual private server and spam and content filtering.

Virtual servers enable companies to appear to be running their own web servers using their own domain name, while the hosting is done by a third party.

In the past, these servers were shared by companies but the new service will be private and more secure.

Marketing manager Kat McClure said: "This service was requested by customers wanting more secure web sites.

"We will be working with certain companies to beta test it first and then we can roll it out to customers around the UK."

Although Ms McClure could not confirm if Mistral was engaged in discussions about acquiring other businesses, she said: "People should watch this space."

Mistral was established in 1994 and launched the following year.

It has focused on the business market, offering connectivity, hosting and internet security to UK businesses.

It has its own network, designed from the ground up to carry business grade internet traffic.

UK customers include Bacardi Breezer, Blockbuster, Sony Music, Microsoft, Pizza Hut, Naked Communications, Bluehealth and Citizen Watches.

Mistral was nominated for Best Business ISP in the ISPA Internet Industry Awards 2001 and recently received the ISO 9001 accreditation.

Anthony Galley, managing director of Digital Future, said: "Mistral is a trusted and reliable company, which provides a great fit for Digital Future in terms of clients and business profile.

"We expect to see Mistral and Digital Future continue to grow and develop their business profitability."

www.mistral.co.uk