The Leeds-based group yesterday accepted an improved offer by the UK's largest IT training company, private equity-backed QA-IQ.

Last week QA-IQ made an £8.7m cash offer for Xpertise Group which would have given shareholders 150p per share. But yesterday it returned to the table with an offer of 165p per share, which Xpertise's board said "fully recognises the qualities of the business".

Richard Last, chairman of Xpertise, said: "Xpertise is an excellent company, the increased recommended offer by QA-IQ Bidco recognises the qualities of the business and its market position and growth prospects.

"While I am sure it will be a matter of regret to many shareholders and our employees that Xpertise is losing its independence, the increased recommended offer fully reflects the value of these factors and the Xpertise directors are unanimous in recommending it to shareholders."

Xpertise, which was formed in 1994, is one of the UK's leading providers of IT and professional training. It has a network of centres across the UK, with 45 training rooms and capacity for about 500 students.

On completion of the deal, Xpertise will be de-listed from the London Stock Exchange. Mr Last will receive almost £1m from his 10.6 per cent shareholding. The recommended offer has the support of investors holding about 57.5 per cent of the Xpertise's shares, QA-IQ said.

Xpertise had itself been on the verge of taking over a rival when the bid from QA-IQ came through. One of the conditions of the QA-IQ takeover was that the acquisition of smaller rival Parity Training Limited for £4.78m, as well as a placing to raise £2.28m did not go ahead. Shareholders at a meeting earlier this week rejected the Parity acquisition.

QA-IQ has training centres around the country, including one in Leeds. It is the largest learning services company in the UK, running more than 800 courses. It is 65 per cent owned by London-based private equity fund Englefield Capital, with management holding the remaining 35 per cent.

Christian Martin, chairman of QA-IQ, said: "We are delighted that through this recommended offer the opportunity to combine the businesses of QA-IQ and Xpertise has been created.

"The combined business will have the capability to satisfy organisations' ever growing training needs and will therefore be able to play a key role in developing skills throughout the UK."

The Berkshire-based company added: "The acquisition of Xpertise by QA-IQ will also remove from Xpertise the considerable financial, managerial and regulatory burdens of being a small publicly quoted company."

Englfield is providing QA-IQ with facilities of up to £10.62m to enable it to make the acquisition.