A fast expanding company has been given a 12m investment boost, writes David Duffy.

Achilles Group, of Milton Park, near Abingdon, links customers from more than 500 organisations in the utilities, rail, oil, gas and public sectors and their 15,000 suppliers. It is also developing an Internet-based marketplace for the utility industry.

The investors include seven UK utilities, venture capital company 3i, and e-business software supplier SAP.

The group was formed in 1993, employing two people in an office in the business development centre in Milton Park, Abingdon. Now it has 85 employees and the premises has expanded to cover 10,400 sq ft.

By the end of this year Achilles will move to a new, 16,600 sq ft flagship headquarters, with space for up to 165 staff.

The 12m raised will be used to further expand Achilles's B2B marketplaces. The share issue by the privately-owned Achilles group values the Company at 40m.

The seven utilities Anglian Water, BG Transco, GPU Power UK, Innogy, PowerGen UK, Severn Trent Water and South West Water are taking an 18.47 per cent stake.

Another 13.3 per cent will be taken by 3i, SAP will take less than five per cent and existing shareholders will keep 56.63 per cent.

Trevor Hope, of the largest single investor 3i, said: "Achilles's experience and existing relationship with over 15,000 suppliers, will make this the dominant utilities marketplace.

Achilles managing director Colin Maund said: "All the parties involved see the key role that suppliers and contractors will play and want to encourage their active participation in the development of the scheme."

Achilles also has offices in Derby, Aberdeen and Ayr, as well as a training consultancy in Oakham, Leicestershire.