The deal is worth an initial £1.4 million, with a retention of £200,000, and follows shortly after K3’s acquisition of Dutch business Unisoft.
IBS provides enterprise resource planning (ERP), which integrates internal and external management information such as accounting and sales, to customers including Dunlop Oil & Marine and Rockwell Automation.
The newly purchased assets are said by K3 to represent an ‘excellent fit’ with its manufacturing software division.
Andy Makeham, chief executive officer of K3, comments: ‘In line with our strategy, it brings a prestigious user base where we see strong cross-selling opportunities for additional services and upgrades.’
For the year to date 31 May 2011, London-headquartered IBS posted an operating profit of £620,000 on sales of £1.37 million. According to a statement over 70 per cent of its revenues are recurring, from maintenance and support income.
The purchase marks K3’s sixth acquisition of 2011. The Manchester-based business started its M&A activity this year in March with a deal for Sense Enterprise Solutions.
Subsequent transactions have included Azurri Computer Solutions, Clarita Solutions and FD Systems.
In September Makeham told MandADeals that he felt prices were at a more affordable level these days and were driving its deal flow.
He said: ‘Owners are generally thinking there is tough ten-year period ahead and now is probably the right time to get out.’
