AN OXFORDSHIRE software engineering firm has been bought by its management in a £9m deal.

Diagnos, which employs 50 people in London Road, Wheatley, provides sophisticated electronics and technical support to independent workshops.

It was founded in 1999 and the owners wanted to sell. Advisers WK Corporate Finance secured investment of £3.75m from Foresight Group, and £3m of flexible debt from Octopus Intermediate Capital.

Diagnos’s product, Autologic diagnostic systems, allows independent mechanics and garages to service and repair vehicles such as Land Rover, Jaguar, BMW, Mini, Mercedes, VW, Audi, Seat, Skoda, Volvo and Porsche.

Diagnos operations director Ian Jones said: “Without diagnostic equipment you can’t reset a car’s service light or service the brakes. Ours is the most expensive and sophsticated kit on the market, and it’s a growing market as car electronics gets more complicated.” He said they were delighted to have found investors in a tough climate. “There’s money out there, but people are obviously picky at the moment. We are a cash-generative business.”

He said the money would allow the business to grow. “It’s great for the business because it brings in new blood. In 2001 there were four of us and we’ve grown to 50.

“We are recruiting for another technician at the moment and we will continue to expand.”

Mr Jones, 39, who joined the company in 2001 and has been responsible for the development of the company’s products, is joined in a new management team by managing director Peter Toland, who has moved from Launch Group; and chairman Kevin Finn, founder of National Service Network.

Diagnos plans to expand its range, which costs about £8,000 for each marque, to include French cars such as Renault, Citroen and Peugeot.