Strategic Acquisition of IP

RNS Number : 8837Z

K3 Business Technology Group PLC

27 January 2022

 

27 January 2022

AIM: KBT

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Company" or "the Group")

Strategic Acquisition of IP

K3, which provides business‐critical software solutions, with a focus on fashion and apparel brands, is pleased to announce the acquisition of ViJi Sas ("ViJi"), an innovative software developer, with an exciting suite of products in Sustainability. The acquisition is strategically significant, and highly complementary to K3's refocused growth strategy and international customer base.

The addition of ViJi complements K3's existing Sustainability offering. It also aligns extremely well with the Company's ambitions in its core target markets of fashion and apparel brands, where the traceability, transparency and certification of supply chains are increasingly important priorities, partly driven by emerging legislation.

Based in south-west France, ViJi has developed fully scalable software solutions that support the sustainability objectives and strategies of fashion retailers. Its products enable brands to trace and authenticate more easily and reliably the environmental and social credentials of their supply chains. This includes the collection, verification and renewal of supplier certifications. The software also has a consumer-facing component, enabling the digital communication of information on the ethical history of items, including materials, manufacturing processes and sustainability.

ViJi's co-founders, Josselin Vogel and Anne-Laurence Villemonteil, and team will join K3 upon completion of the acquisition.

The acquisition has been agreed for an initial cash consideration of 0.35m EUR in the first year, with further cash consideration, capped at 0.7m EUR, due over the next two years, dependent on the attainment of annual recurring revenue performance targets.

Marco Vergani, CEO of K3 Business Technology Group plc, commented:

"We are delighted to be acquiring ViJi. It has developed a highly innovative suite of products that address one of the most pressing needs for our customers, the traceability, transparency and sustainability of their supply chains.

"The fashion and apparel sector in particular is highly motivated to ensure its goods are produced in an environmentally-sustainable and socially-responsible way. Consumers are also demanding greater transparency, and are increasingly favouring brands that prioritise sustainability. These trends are being accelerated by legislation supporting carbon reduction and increased transparency of supply chains.

"ViJi is highly complementary, adding strategically important intellectual property and domain knowledge as we focus on the high-growth fashion and apparel sector and help to transform retail for good. We are very pleased to welcome the ViJi team to K3."

Josselin Vogel and Anne-Laurence Villemonteil, Co-founders of ViJi, commented:

"There is a large and underserved market for our truly innovative solutions. The fashion and apparel industry - which is our specialisation - lack effective software, and we are excited to be joining K3 with its well-established reputation in this sector and relevant international client base. Our products are an excellent fit and will accelerate K3's ambitions in Sustainability."

Enquiries:

K3 Business Technology Group plc	Marco Vergani, CEO Rob Price, CFO	T: 0161 876 4498
finnCap Limited (NOMAD & Broker)	Julian Blunt/ James Thompson (Corporate Finance) Richard Chambers / Sunila de Silva (Corporate Broking)	T: 020 7220 0500
KTZ Communications	Katie Tzouliadis/ Dan Mahoney	T: 020 3178 6378

 

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