K3 buys up Retail Systems Group
Retail Systems Group (RSG), based in Coleshill, has been snapped up by a North West software company in a deal worth up to £3m.
K3 Business Technology Group, which won a prize at Insider's North West Dealmakers Awards 2011, is set to initially pay £1.28m in cash on completion.
RSG specilises in providing e-commerce solutions.
An additional payment of £1.5m is then due in respect of surplus cash and an earn-out of £200,000 is payable over the next two years dependent on performance.
Andy Makeham, chief executive of K3, said: "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."
For the year to 30 June 2011, RSG generated sales of £2m and an operating profit of £300,000.
It comes five days after K3 Business Technology said it had also bought "certain assets" of the Integrated Business Systems division from Maxima Holdings for £1.4m.
