The acquisition adds more than 2,000 tax, monthly write-up and payroll clients. It involves three office locations in Cincinnati including Paymaster, Inc., a payroll processing company, and one in Indianapolis, Ind.

"Their location complements our Indiana base very well but also opens the door of Ohio," said Yves Morard-Lacroix, Fiducial's executive vice president. "It helps reinforce our presence in the Midwest ."

Bill Morice, director of Fiducial's field operations, indicated that the deal gives Fiducial a strong foothold in Cincinnati while extending the company's presence in Indianapolis.

"The Tri-State area of Ohio, Kentucky and Indiana is where Fiducial wants to concentrate on to serve small business clients," said Morice. "With existing offices in Indianapolis, Louisville, Ky., and now Cincinnati, Fiducial has further increased its reach."

Mike Thomas, formerly of Matrix, will serve as branch manager of Fiducial's Cincinnati office. He noted that the acquisition made sound business sense for both parties since they shared similar business models and philosophies.

"That's the one aspect that made it look very advantageous from our point of view because we do the same things," said Thomas.

The head of Fiducial's U.S. operations added that the purchase also sets the tone for additional acquisition efforts in 2007.

"We want to be very aggressive with our acquisition program this year," Morard-Lacroix said. "It shows our determination to grow by acquisition everywhere. I hope this sets an example for our other district offices."

Terms of the agreement, effective January 1, 2007, were not disclosed.