The move was announced by finance secretary John Swinney during a visit to the company, BiP Solutions in Glasgow.
The Scottish Government is to make an £800,000 grant towards the expansion, which will see the firm move from Shawfield near Rutherglen to Glasgow's "digital quarter" at Pacific Quay.
The firm is to invest £1 million in the expansion on top of what it will spend for a lease on the new premises, said officials.
The expansion will see 100 jobs added to its existing workforce of 160.
Mr Swinney said: "Today's announcement is excellent news for Glasgow and the wider economy, particularly in the current climate."
He said the award, under the regional selective assistance scheme, underlined the Scottish Government's commitment to ensure Scotland was well placed for a faster and stronger recovery.
"By supporting job creation and helping to increase sustainable economic growth, RSA can be an important tool in our effort to help companies - and our economy as a whole - weather the global downturn," he said.
