Business support services company Mitie - which employs people across the Midlands - has clinched a deal to buy Warwick-based security services group Watch for up to £8.1 million.

The terms of the agreement will see £6 million payable on completion with a further £2.1 million deferred.

The group said it expects "considerable synergy savings from the deal" - the buying power of Mitie will enable Watch to purchase equipment at a lower bottom-line price.

Mitie chief executive Ian Stewart said: "The acquisition of Watch completes our national footprint for security enabling us to provide our customers with a more comprehensive service and to compete for larger national contracts."

Watch is a provider of manned guarding and electronic security and it operates throughout the Midlands.

Accounts for the year ended June 30, 2004 showed turnover of £15.3 million, pre-tax profits for the year of £0.4 million and net assets of £1.08 million.