K3 up for sale after takeover approaches

SOFTWARE company K3 Business Technology is in offer talks with “a number of” suitors and has launched a formal sale process.

The Salford Quays-based group, which begab a strategic review in early December after an approach from a shareholder – which was ultimately rejected – said in an update it has “received a number of indicative proposals at levels materially higher than the current share price”.

It added: “Whilst the board firmly believes that the Company has a secure future as an independent business, it recognises that further investment will enable it to more fully exploit the potential of its managed services business.

“The strategic review has completed and the Company is holding ongoing discussions with these potential offerors.”

A number of private equity houses are known to be looking at K3.

The company said it would now conduct a formal sale process through its financial advisers, Deloitte corporate finance, with bids submitted by March 27.

It added: “There can be no certainty that any offer will be made for the company, or even proposed, or as to the level of any proposal or offer that may be made.”

Led by chief executive Andy Makeham K3 supplies enterprise resource planning software, hosting and managed services to the supply chain industry.