Motorsport group Prodrive has bought automotive engineering company Tickford, creating one of world's largest independent vehicle technology businesses.

The new company, based in Banbury and with bases in the UK, USA and Australia, will have a combined turnover of £100m. It will target the growing global demand for specialist outsourced automotive technology, a market valued at nearly £3bn a year.

Prodrive is planning to float on the stock market within the next three years.

Chairman David Richards said: "We have been looking at potential acquisitions in the motorsport and automotive industries for the past 18 months, but none was as good a fit as Tickford. This acquisition has immediately elevated Prodrive into one of the major players in the automotive technology sector and puts us a step closer to our intended stock-market flotation."

Tickford, based in Milton Keynes, has skills in engine development and testing, alternative fuels and the design and manufacture of limited-edition performance vehicles for major vehicle manufacturers.

Its global operations will become part of Prodrive's growing automotive technology division, which already works with vehicle manufacturers across the world.

The acquisition also includes a 50 per cent share in three joint ventures in the US and Australia, giving Prodrive even greater access to the important North American and Asia-Pacific car markets.

The new group will have a combined workforce of nearly 900, ranking it as one of the largest businesses of its kind.

Nick Fry has been appointed group managing director of Prodrive. He joined the company in January to head the automotive technology division. He was previously a senior director at Ford and managing director of Aston Martin.