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.