The international power and technology group, ABB, has announced it is investing $10 million (SFr17.12 million) to buy a minority stake in the Swedish software maker, Industrial & Financial Systems.

Under terms of the deal, ABB has acquired 3.7 per cent of IFS, which represents 1.8 per cent of the voting rights, through a direct share issue.

A statement from the group's headquarters in Zurich said the investment by ABB New Ventures strengthened an existing technical and commercial alliance between ABB and IFS.

For more than a year, IFS has been developing ways to integrate its business software, called IFS Applications, with ABB's Industrial IT platform.

ABB signed an agreement with IFS in January to resell IFS Applications components.

In the long term, cross licensing of systems between the companies is expected to decrease research and development costs for both partners.

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