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U.K. SYSPRO VAR MAKES THREE BUYS

k3_logoK3 Business Technology Group, an important Syspro reseller based in the United Kingdom, acquired three other companies in December. The deals primarily extend K3's existing lines of business in countries in which it is already operating with the acquired companies having about $10.7 million in combined annual revenue. Early last month, it acquired Unisoft, which sells retail Point of Sale applications in Holland and Scandinavia (primarily in Holland).
The purchase price is about $770,000 with the sellers able to earn another $1.54 million. Unisoft had annual revenue of about $5.5 million with about 45 percent coming from maintenance income. The deal adds to K3's existing business in that country. Mid-month brought the acquisition of assets of Integrated Business Systems division from Maxima Holdings for about $2.2 million. IBS had sales of just over $2 million for the year ended May 31. More than 70 percent of revenue comes from maintenance and support income. IBS markets an ERP system to large ERP system to large make to contract manufacturers. And finally, K3 added to its retail business by absorbing the Retail Systems Group, which sells Dynamics RMS in the U.K. and Ireland. The acquisition was pictured as giving K3 access to the market for smaller retailers. K3 has sold primarily to mid-range companies. K3 is paying about $2 million for RSG. The acquired company had about $3.1 million in annual revenue. Forty percent of that is recurring, split equally between managed services and maintenance/support. Another 35 percent comes from sales to the installed base. Particularly in regard to the Dutch company it's tempting to link it to the euro problems which have caused some serious realignment among European Dynamics resellers.
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