K3 builds its customer base

Business software company K3 has added to its M&A drive by acquiring Unisoft BV as part of a deal which could ultimately cost euro2.77 million (£2.4 million).

Following on from purchases including Azurri Computer Solutions, Clarita Solutions, FD Systems and Sense Enterprise Solutions, the newly acquired business, which provides point of sale services, is said by K3 to be complementary to K3’s existing Dutch retail operation.

Based in the Netherlands, Unisoft BV has customers including Dixons, O’Neill, T-Mobile and Pepe Jeans.

Andy Makeham, chief executive of K3, comments: ‘Unisoft is a natural extension of our existing European retail operations and an excellent acquisition for K3.

‘We look forward to working together with the team to grow the business further.’

Speaking to MandADeals earlier in September Makeham said that he felt prices were at a more affordable level these days.

He said: ‘Owners are generally thinking there is a tough ten-year period ahead and that now is probably the right time to get out.’

Looking at what is driving deals for K3, Makeham said that, while the rationale behind its acquisition criteria in previous years was about bolstering K3’s infrastructure, it is now about expanding its customer base.

Under the terms of the deal for Unisoft, an initial €500,000 is payable in cash on completion with an additional €1 million, also payable in cash, dependent on certain criteria.

In addition, an earn-out element is payable over the next three years, based on performance, of up to a maximum value of €1.27 million.

Todd Cardy

Todd Cardy

Todd was Editor of GrowthBusiness.co.uk between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital. Connect with...

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