K3 Business Technology Group Plc involved in Acquisition
K3, which supplies enterprise resource planning ("ERP") software, hosting and managed services to the supply chain industry, is pleased to announce the acquisition of certain assets of the Integrated Business Systems division ("IBS") from Maxima Holdings plc. The initial consideration for the acquisition is £1.4 million in cash, with a retention of £0.2 million.
IBS provides its market-leading ERP system to large Make to Contract manufacturers, with a blue-chip customer base including Dunlop Oil & Marine, Rockwell Automation and Thales Group. For the year ended 31 May 2011, IBS achieved an operating profit of £0.62 million on sales of £1.37 million. Over 70% of revenues are recurring, derived from maintenance and support income
The business represents an excellent fit with K3's manufacturing software division and will be easily integrated into existing operations. Furthermore, the acquisition is in line with the Group's strategy to add profitable customer bases with significant cross-selling opportunities.
Andy Makeham, CEO of K3, commented,
"I am delighted that we have completed the acquisition of IBS. It is a highly complementary fit for our existing manufacturing software division and, in line with our strategy, it brings a prestigious user base where we see strong cross-selling opportunities for additional services and upgrades."