The two companies share a client in Vale Inco, and believe the deal provides a growth platform for their respective software offerings.

Quebec-based Algosys is a metallurgical accounting software company specialising in precious and base metals, an area QMASTOR does not have a significant exposure to.

Algosys has a strong presence in North and South America, but not in Australia, so QMASTOR intends to sign up a Perth-based business development manager to offer Algosys software to Australian customers.

QMASTOR will purchase all of the shares in Algosys for a maximum of $C5 million ($A5.01 million) to be paid in three instalments over the next two financial years.

The HoA is subject to board and regulatory approvals, as well as QMASTOR raising funds.

The company today launched a $A3.9 million fully underwritten renounceable rights issue at 21c per share to fund the purchase.

In June QMASTOR beat international rivals to win a major contract to supply its Horizon advanced planning and scheduling software to the Hunter Valley Coal Chain Coordinator.

HVCCC must coordinate and plan coal movements from 35 coal producers in the region, which has more than 27 rail load points.

Shares in QMASTOR jumped 5% or 1.5c to 29.5c on Friday.