Acquisition

RNS Number : 4226N

K3 Business Technology Group PLC

28 July 2014

 



AIM: KBT

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group")

Acquisition of Retail Technology Limited

K3, which supplies and supports Microsoft-based Enterprise Resource Planning software, is pleased to announce the acquisition of Retail Technology Limited ("RTL"), the Microsoft Dynamics based EPOS provider to smaller retailers, for a total consideration of £0.61m cash in addition to the existing cash in the business at completion. 

RTL represents an excellent strategic fit with K3's existing solution for smaller retailers and is expected to be immediately earnings enhancing.  The acquisition adds valuable intellectual property, which K3 is already utilising in its offering for the small retail market, as well as critical mass. 

For the year to 31 May 2013, RTL generated sales of £0.8m of which a high proportion, approximately 69%, is recurring annual revenue.  Pre-tax profit for the period was £0.14m and current trading indicates an operating profit run rate of approximately £0.2m. RTL's existing customer base numbers some 180 retailers. Net assets at completion are approximately £0.14m.

David Bolton, Chief Executive, commented, 

"K3's focus is on driving organic growth and this acquisition, which will be immediately earnings enhancing, is a strategic infill for us in the smaller systems EPOS market. It will be readily integrated with our existing operations which serve this area of the retail sector." 

Enquiries:

K3 Business Technology Group plc	David Bolton (CEO)	T: 0161 876 4498
	Brian Davis (CFO)
finnCap Limited (NOMAD)	Julian Blunt/Henrik Persson	T: 020 7220 0500
KTZ Communications	Katie Tzouliadis/Deborah Walter	T: 020 3178 6378

 

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