VELOS-IT has been sold to an America firm for a "substantial" sum, writes Greg Cameron.

The Glasgow firm, which employs 100, has been snapped up by New York-based cloud computing and business recovery specialist Velocity Technology Solutions (VTS).

Velos-IT commercial director Alan Kerr said the company, founded in 2004 by a group of former Motorola IT personnel, had turned down takeover approaches in the past. However, Mr Kerr said the deal offered a number of opportunities, with the greater scale allowing Velos-IT to compete for larger contracts which will help it to expand operations in Scotland.

Jim McInnes, managing director of Velos-IT, has been named VST's general manager for Europe. All four Velos-IT directors – Mr McInnes, Mr Kerr, Chris Grier and David Smithers – have retained equity.