A Norwich technology company has cut 12 jobs from its city workforce after buying a rival business at the end of last year.

Proxama said it had made redundancies in its software development and sales departments as it integrates with Aconite Technology – a London-based business it bought for £2.06m in December.

The software and marketing firm – which produces platforms on mobile phones so people can make contactless payments – employs 120 people at St James' Mill, Norwich, and has offices in London, New York and San Francisco.

It said the job losses were not linked to its performance, with revenues set to rise when it publishes its results next week.

A company spokesman said: 'Proxama is a public company which made an acquisition of Aconite Technology. Aconite is a similar company and Proxama had too many people doing the same roles. The combined group of Proxama and Aconite has substantial revenues.'

Aconite Technology also works in contactless payment and has contracts with Europay, Mastercard and Visa. Proxama could pay a further a £1.75m for Aconite depending on its future performance.

Proxama hopes the decision by technology giant Apple to use contactless payment software in the iPhone 6 will open up a new market for it in the future, the spokesman added.

Proxama made its mark on Norwich last year when it was awarded funding from the Technology Strategy Board to roll out a project which would see discounts, offers and coupons sent to people's mobile phones as they shopped around the city.

The trial included the use of Bluetooth Beacons on buses, which sent rewards to people's phones as they travelled. More than 20 Norwich firms signed up to the scheme, which was supported by the Norwich Business Improvement District.

The company recently announced two board-level appointments, with Mike Woods joining as chief executive of the payments division and John Kennedy as chief financial officer. Neil Garner is the chief executive and founder of the business.

According to the London Stock Exchange, Proxama generated revenues of £813,380 to December 31 2013 and made a group loss of £5.2m. Aconite's revenues hit £1.75m in the year to 31 March 2014, with a gross profit of £1.5m.

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