Saltaire-based micro technology giant Pace has followed up its partnership deal with Sega by buying out a French rival.

The digital set-top box producer has paid £18.1 million for Xcom, which has markets in Europe, Asia and the Middle East, and had revenues last year of £15.8 million.

Pace hopes the acquisition will strengthen its international position as a developer of digital TV 'gateways', which can also provide video and Internet compatible console games from just one machine.

The firm will pay £800,000 in cash for Xcom and the rest in new shares, and may pay a further £22 million depending on Xcom's performance over the next two years.