National World had acquired PCS as part of its £11.5m deal to buy Midland News Association six months ago.

PCS offers specialist software-as-a-service technology to publishers, and has many users in local media.

National World chairman David Montgomery commented: "Newspaper production technology is not our core expertise and so we believe PCS is being transferred into good hands with Naviga, which is best placed to develop that business while continuing to serve National World's modernisation and automation needs for the long term."

Naviga, formerly Newscycle Solutions, supplies publishers and entertainment companies with systems including content, monetisation and advertising booking. It has more than 14,000 clients worldwide including Hello!, The Telegraph and Disney.

The US-headquartered business acquired PCS as a going concern via Naviga 1 UK Ltd.

The £3.5m consideration for the sale was satisfied via a prepayment by National World to Naviga under a software agreement entered into between the two companies.

PCS has no association with Precision Card Services, which is also known as PCS.