K3 ends the year with string of deals

Business software company K3 has acquired for the third time in December through the purchase of Retail Systems Group (RSG).

West Midlands-based Retail Systems Group provides Microsoft Dynamics retail management systems (RMS), which offers small and medium-sized retailers point of sale services. It has customers including Aston Martin, Triumph and the National Portrait Gallery.

Under the terms of the deal an initial consideration of £1.28 million is payable on completion, with a subsequent amount of approximately £1.5 million due in respect of surplus cash in the business at completion.

An additional earn-out of up to £200,000 is also payable over the next two years, dependent on certain performance criteria.

Andy Makeham, chief executive of Manchester-headquartered K3, comments: ‘RSG represents another excellent acquisition for K3. We already have an established business delivering retail software solutions to mid-tier retailers and RSG will extend our reach into the substantial small retailer market.

‘In addition, it brings us strong recurring revenues, including from managed services, from a large, high quality customer base.’

According to a statement the purchase gives K3 access to the ‘significant’ market for smaller retailers, which is said to complement its existing mid-range retail software offering.

K3’s December M&A activity has included deals for Integrated Business Systems for up to £1.6 million and Unisoft BV for £2.4 million. Its total acquisition count for 2011 now stands at seven.

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.

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