E-learning company Academy Internet has acquired staff and "key assets" from rival Adval Learning Solutions which fell into administration last month.

Academy, in Union Street, Brighton, announced it had successfully integrated troubled Adval's Brighton-based e-learning division Maxim into its business.

Adval, based in Berkshire, tried to strengthen its balance sheet when it merged with Maxim - formerly known as KnowledgePool e-learning - in March.

But despite several new contract wins, not enough cash was being generated to finance the business, whose turnover had fallen from £5.6 million in 2002 to £2.4 million.

Last month administrators were drafted in to find buyers for the company, which was split into three separate units, one of which was Maxim's e-learning division.

Academy, which also does internet marketing, has taken on six core members of the Maxim team, including creative director Richard Middleton and sales director Tim Harrington.

Academy has also purchased the global intellectual property rights for Maxim's software package Originate, which allows clients to build their own online courseware.

Jason Woodford, Academy's development director, said Maxim had managed to hold on to more than ten major clients over the last month, despite the threat of liquidation. He said: "Our near 100 per cent success rate in retaining the former Maxim customers is clear testimony to the strength of the relationships we are entering into.

"It is the same team, using the same technology, with the same customers but without the burden of debt or the frustration of not being able to develop their own business.

"It's the old tale of consolidation where the strong survive and the weak go under and what's great is that two businesses with their roots in Brighton have come together."

He said several Maxim projects, including one for a High Street UK bank, had already been completed by the Maxim team since they moved into the Academy offices.

Mr Harrington said: "Despite strong pressure to disband, my team has kept faith in itself and its ability to impress customers by choosing to work with Academy Internet. We are now debt-free, profitable and cash-generative, giving us the freedom to develop the business."

Academy is on track to become one of the top 25 digital media businesses in the UK.