K3 fuels growth with buy

Software business K3 has made its third acquisition of 2011 with the purchase of the Retail Merchandising Division of Azurri Computer Solutions.

The deal for the division of information technology support and implementation business Azurri is for an initial £1 million with a further £500,000 dependent on increases in gross margin generated by Azurri Retail during the next two years.

Chief executive officer of AIM-listed K3, Andy Makeham, says that Access has continued to strengthen recurring revenues by acquiring new user bases. K3 currently supplies and supports Microsoft-based Enterprise Resource Planning software to the supply chain industry.

He adds that it enables Access to offer additional free services and upgrades.

Makeham explains: ‘Azurri Retail represents an exciting opportunity to acquire a prestigious retail customer base.’

According to a statement the acquisition is in line with K3’s strategy to develop ‘significant cross-selling opportunities, in particular for its hosting and managed services.

For the six months to 31 December 2010 K3 reported revenues of £24.67 million, a 5 per cent increase from 2009, and profit before tax of £4.23 million.

The purchase follows K3’s March buys of Clarita solutions for £1.05 million and Sense Enterprise Solutions for £1.2 million.

Azurri Retail had reported generated sales of £1 million for the year to December 2010 and profits of £400,000. Its customer base includes Matalan, Holland & Barratt, Littlewoods and JJB Sports.

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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