Up to 130 jobs are to be created in Oxfordshire due to a multi-million pound investment by an information technology firm.

The new workers will all be needed at a £5m site being built by Torex at Junction 11 of the M40 near Banbury, which will consolidate its healthcare division.

It is also building a centre in Witney to house its retail arm, which is spread over three sites.

It will close its current operations in Bromsgrove and Basingstoke, and switch to the new purpose-built centre, which will employ about 270.

Chief operations officer Bob Day said about 140 staff were expected to relocate from the two towns and he expected 130 vacancies to be created as a result of workers deciding against the move.

He added: "It's a prestigious site, which provides better office accommodation and access around the country.

"The company's grown very quickly and we needed to have a consolidated base and this is a very good location.

"There is also a good pool of labour around the Banbury and Bicester areas and the signs are we're attracting the right sort of people."

The healthcare division provides IT systems for hospitals and GPs.

Torex's retail arm supplies major shopping chains including Argos and Littlewoods with equipment such as electronic point-of-sale systems. Mr Day said the firm was confident about the future, despite uncertainty in the IT sector.

"We're very happy with our performance and there's a high level of Government expenditure in healthcare, so we're confident about making this sort of investment," he added.

The new Witney site will take in two existing operations in the town, as well as the head office in Stonesfield.

About 100 people will transfer to the new building by next February.

Mr Day said: "This is a major vote of confidence in the future and in our plans to grow the business. It is a statement of intent."

In February, Torex said pre-tax profits had soared by 75 per cent to £20.4m for the year ending December 31.