Artilium plc, a telecom software specialist, has strengthened its offering with the acquisition of a location-based services provider to mobile network operators.

The group bought Trisent Communications, which helps mobile network operators tailor its services based on the geographic location of their clients’ mobile phones, for £1.7 million.

Artilium’s directors believe location-based services is a growing part of the communications market, with research from Gartner Group predicting that subscriptions of these services across Europe, North America and Asia will rise from £7 million in 2006 to £298 million by 2011.

The consideration was satisfied in £460,000 cash with the balance paid in some 1.24 million shares. Under the terms of the agreement, a proportion of the shares are deferred until set targets are achieved.

Dunfermline-based Trisent was founded by Dr Gordon Povey, who remains with the company post-completion.

Artilium has completed more than 40 installations serving tens of millions of end-users in 11 countries since it was established in 1995.

Trisent’s technology helps network operators offer real-time tracking services similar to GPS, but without the need for satellites or the installation of other costly equipment on the network. Trisent has a licensing agreement with Max Telecom, a fixed and wireless telecommunications operator in Bulgaria.