K3, which supplies business planning software to retailers and manufacturers, has acquired IT hosting company DigiMIS for up to £2.1 million.

K3, which supplies business planning software to retailers and manufacturers, has acquired IT hosting company DigiMIS for up to £2.1 million.

DigiMIS has data centres in London, Edinburgh and New York, from which it offers a range of hosting and IT infrastructure services. The company generated revenue of £1.3 million in the six months to December 2009.
 
Andy Makeham, chief executive of K3, says there is growing demand for IT hosting services and the addition of DigiMIS will give the group a competitive advantage.

The deal comes shortly after AIM-listed K3 raised £1.5 million in a placing at 25p a share. In the six months ending June 2009, the company reported revenue of £15.9 million and pre-tax profits of £131,000.