Acquisition of software business out of administration saves 19 jobs
The loss-making subsidiary of Manchester software firm K3 Business Technology Group has been purchased out of administration, saving 19 jobs.
London-based Sigma Dynamics has acquired the Dynamics 365 Finance and Operations trade and assets of K3 Business Technologies Limited, as it continues to expand its UK business.
The UK Microsoft Dynamics reseller business, which is part of Sigma, a Swedish IT Services firm with more than 5,000 staff throughout the world, has bought the £3.5m-turnover business for £250,000, following its fall into administration as a result of COVID-19, in April.
Sigma Dynamics will take control of the projects, support and managed services outfit K3, including its 31 clients, which span the retail, fashion and manufacturing industries, as well as its 19 employees, adding to the company’s industry specialisms in wholesale distribution, field service engineering and construction.
Sigma Dynamics is a group of experienced consultants with extensive industry knowledge, which advise, deliver, develop and manage Microsoft Dynamics and office applications.
Its leading product lines include Microsoft Dynamics 365, Internet of Things, Connected Field Service, unified commerce and the Smart Office.
Colin Crow, managing director at Sigma Dynamics UK, said: “We’re thrilled to have acquired the K3 business, as it fits directly into our existing business strategy.
“This addition to the UK business will give our customers greater value, both to their local business, and to their global business through our presence worldwide.
“Being part of the global Sigma group will allow our clients to gain additional support on other areas of their operations and business, from our other expert business units, helping them increase their productivity and profits in the future.”
He added: “Our first task is to address the current and immediate business needs of our new clients and help deliver their ongoing projects. We are also supporting all clients on planning, putting the necessary tools and processes in place to keep them operating during and beyond these testing times.
“Our plan is to strip out the inefficiencies of the business, back to its sound operations, and enable this area to become profit-making, as it is incorporated into Sigma Dynamics UK.
“This will place productivity and efficiency at its heart and guarantee its future prosperity.”
Jonas Steffensson, head of Sigma Dynamics, said: “The UK has always been a hub for the European market, and with the acquisition of K3 we have a stronger position for our customers in UK and Europe.
“It will add significant and unique value to our business, and allow further collaboration between our expert business units across the group.”
Chris Ratten and Jeremy Woodside of RSM Restructuring Advisory were appointed joint administrators on April 21, 2020.
Chris Ratten, partner of RSM, said: “We are very pleased to have found a stable and solid home for the finance and operations part of the K3 Dynamics business.
“We are confident that customers and employees will have a partner who they can work with and build a long-term relationship. Sigma’s global strength and breadth of services will add significant value to the customer base.”