K3 bolts on again
BUSINESS software specialist K3 has announced a second bolt-on deal in as many weeks.
The Salford-based company has bought some of the assets of the Integrated Business Systems division from Maxima Holdings for an initial £1.4m in cash.
K3, which supplies enterprise resource planning software, hosting and managed services to the supply chain industry, said the acquisition is an “excellent fit” with its own manufacturing software division, and will be easily integrated and offer “significant” cross-selling opportunities.
IBS provides its system to large ‘make to contract’ manufacturers, with a blue-chip customer base including Dunlop Oil & Marine, Rockwell Automation and Thales Group.
In the year to the end of May, IBS achieved an operating profit of £620,000 on sales of £1.37m. More than 70% of revenues are recurring, derived from maintenance and support income.
Andy Makeham, chief executive of K3, commented: “”I am delighted that we have completed the acquisition of IBS. It is a highly complementary fit for our existing manufacturing software division and, in line with our strategy, it brings a prestigious user base where we see strong cross-selling opportunities for additional services and upgrades.”
Last week’s acquisition saw K3 expand its continental footprint with an acquisition in Holland.
