Agresso said it beat off competition from Microsoft to win the deal with the city of Kelowna in British Columbia. The contract includes software, services and maintenance for an unspecified number of years.

Agresso’s ERP suite, which covers financial management, HR and payroll, procurement management, project costing and billing, process automation, planning, and reporting and analytics, replaces PeopleSoft’s financial, HR and payroll applications.

PeopleSoft agreed to be acquired by Oracle at the end of 2004 after a year of resisting its advances.

Agresso said it competed directly against two Microsoft Dynamics-based solutions for the contract. Agresso said in a statement that won due to the tight integration of its ERP applications suite and its experience in implementing software in municipal settings.

Agresso is a subsidiary of Netherlands-based Unit 4 and maintains its North American headquarters in Victoria, British Columbia. The company saw its revenue rise 29% to $225m last year and now boasts over 2,600 customers most of which are mid-sized organizations. These types of deals typically range from $500,000 to $1m.

Agresso claims that an increasing number of mid-market firms are turning to its software because they are fed up with the high-cost of change associated with higher-end ERP systems from Oracle and SAP.