SX3, the logistics management subsidiary of the Viridian Group, is to target businesses in the Republic as part of a £2 million sterling investment which will create up to 50 jobs this year and a further 20 over the following 18 months.

The expansion was announced at the official opening of Sx3's offices in Blanchardstown yesterday and signalled its intention to compete for contracts in the private and state sector as part of an "all-island" growth strategy.

Mr Noel Brady, sales and marketing manager of Sx3, said he expected the firm would generate turnover of some £115 million this year, with sales in the Republic worth some £10 million over three years.

He said Sx3 would market its full range of logistical support services in the Republic including software consultancy, hardware distribution and local government software solutions. There were considerable opportunities in the government sector in the South through an new openness towards public private partnership, Mr Brady said.

He said Sx3 would aim for organic growth as well as growth through acquisition. He said the company was always looking for opportunities in the Republic but there were no imminent announcements expected.

Sx3 is one of Northern Ireland's fastest growing companies and has made acquisitions worth more than £100 million since its launch in September 1998.

Last month its acquisition of UK-based First Software brought Sx3's combined workforce to over 1,000 with revenue in excess of £100 million per year.

Asked if Sx3 would seek a separate market listing Mr Brady said there was speculation about an initial public offering and this made good sense.