Acquisition
AIM: KBT
K3 Business Technology Group plc
("K3" or "the Group")
Announces
Acquisition of Clarita Solutions Ltd
K3, which supplies and supports Enterprise Resource Planning ("ERP") software to the supply chain industry, is pleased to announce the acquisition of Clarita Solutions Ltd ("Clarita"), which provides Microsoft Dynamics NAV ERP solutions ("NAV") to the retail and distribution markets. The consideration for the acquisition is £0.82 million, payable in cash on completion, and K3 is also assuming certain financial obligations to a maximum of £230,000.
For the year to 31 December 2010, Clarita generated sales of £3.1 million and an underlying operating profit of £0.25 million. Approximately one third of revenues are recurring and the business has circa 70 customers.
Clarita represents a highly complementary 'bolt-on' acquisition, which will be readily integrated into K3's existing operations. As well as delivering NAV solutions to retailers, Clarita is also an established distributor of K3's Pebblestone fashion distribution software solution.
Andy Makeham, Chief Executive of K3, said,
"Clarita is a well-established NAV reseller in the UK focused on the same market sectors as K3. It therefore represents a highly complementary acquisition, which we can readily integrate into our existing operations. Its addition brings us £1 million of recurring revenues and another 70 customers to whom we can offer further software services and solutions, including hosting."
Enquiries
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K3 Business Technology Group plc |
Andy Makeham, Chief Executive |
T: 0161 876 4498 |
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David Bolton, Finance Director |
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Canaccord Genuity Limited (NOMAD) |
Simon Bridges / Kit Stephenson |
T: 020 7050 6500 |
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Biddicks |
Katie Tzouliadis / Sophie Lane |
T: 020 3178 6378 |
This information is provided by RNS