Misys, Folgate and Software Solutions Partners (SSP) are jockeying to buy 24 7 owner Rarrigini & Rosso (R&R) Group. R&R needs a buyer because its troubled software solutions arm 24 7 has drained its funds, sources said.

"More than £9.5m has been poured into the black hole of 24 7 and they have not managed to get enough users.

"The only choice they have is to sell off the profitable arm to stop themselves going bust," said a source.

Misys is reputed to have bid £12.5m for the company in its attempt to outbid another broker. SSP has also shown an interest in 24 7 and Folgate in the whole company, said sources.

The Misys bid would buy it the profitable Fleet UK, Property UK, Encompass, ARM (driver awareness training) and 24 7.

R&R is reported to have pumped more than £9.5m into 24 7 which, a year after its launch, has only around ten brokers live. More than £1m was also spent on a Himalayas ASP, which has not been used, said sources.

R&R commercial director Martin Ward said: "It is an attractive group with a long history and from time to time we receive offers, but it does not mean anything."

SSP chief executive David Rasche said: "I am not going to comment on commercial discussions until it has become public knowledge."

Folgate chief executive Andy Homer said: "We'll buy anything if it's up for sale."