The company said that it will gain some 30 IT staff "experienced in local government solutions" as part of the deal, according to Civica chief Peter Anderson.
The acquisition includes Practical's existing local government customer base, intellectual property rights to the company's local government software applications, and all associated assets.
"Practical's local government customers are located predominantly in Queensland and NSW and this acquisition provides an excellent opportunity to build our presence in the Queensland local government market," Anderson said.
More than 250 local government authorities use Civica applications across all states and provinces of Australia and New Zealand, according to Anderson.
This makes the company one of the largest software and services suppliers to the sector, he said.
The announcement follows Civica's acquisition of Fujitsu's local authorities business in Australia and New Zealand in May 2008.
Financial details of the transaction were not disclosed.