Acquisition

RNS Number : 0614D

K3 Business Technology Group PLC

04 July 2016

 

4 July 2016

AIM: KBT

K3 Business Technology Group

("K3" or "the Group")

Acquisition

K3, which provides and supports software, hosting and managed services to the retail, manufacturing and distribution sectors, is pleased to announce the acquisition of Merac Limited ("Merac") for an initial consideration of £1.27 million, payable in cash.  A further consideration of up to £175,000 is due in 2017, dependent on performance. The acquisition has been agreed on a debt free/cash free basis and is expected to be immediately earnings enhancing.

Established in 2001, Merac is the author of an electronic point-of-sale and management system for the visitor attractions and leisure sector. Its solution, 'MStore', covers ticketing, hospitality and retail, as well as admission control, bookings, membership management, marketing, stock control, purchasing, customer relationship management and event management. In the financial year ended 31 March 2016, the company generated revenue of £1.24m and an adjusted* profit before tax of £0.33m.  Its net assets at that date were £0.3m.

Merac's customers comprise many of the UK's leading historic houses, zoos, theme parks, museums, gardens and heritage railways. Visitor attractions which deploy Merac's solution include Stonehenge, Longleat Safari Park, Castle Howard, Adventure Island, Crealy Great Adventure Parks, Alnwick Castle and Wookey Hole Caves.

The acquisition enhances K3's existing presence in the visitor attractions and leisure sector and is in line with the Group's strategy to develop its portfolio of wholly-owned IP products. 

*adjusted profit before tax is stated before director pension contributions

K3's Chief Executive, David Bolton, said:

"We are very pleased to announce the acquisition of Merac, which has developed a leading solution for the visitor attractions and leisure sector. Its solution, MStore, is used by English Heritage and across many high profile visitor attractions, such as Stonehenge, Longleat Safari Park and Castle Howard. Its addition is entirely complementary and increases our existing presence in the sector as well as adding to our portfolio of wholly-owned IP."

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

K3 Business Technology Group plc		David Bolton, Chief Executive Brian Davis, Chief Financial Officer		T: 0161 876 4498
finnCap Limited (NOMAD & Broker)		Julian Blunt/James Thompson Corporate broking: Malar Velaigam		T: 020 7220 0500
KTZ Communications		Katie Tzouliadis/ Viktoria Langley/ Emma Pearson		T: 020 3178 6378

 

END

 

 

ACQRBMFTMBIMBJF