25th Apr 2016 07:58
LONDON (Alliance News) - K3 Business Technology Group PLC Monday said it has agreed to buy Retail Support International ApS, known as DdD Retail, which it will fund through a placing to raise GBP13.5 million.
K3 Business Tech has will place 4.1 million shares at a price of 330 pence, to raise GBP13.5 million. It will use this money to fund the acquisition, alongside additional product opportunities, and for working capital.
Shares in K3 Business Tech were up 1.9% at 347.00 pence Monday morning.
It will pay up to EUR10 million, or around GBP7.9 million, for DdD Retail. This includes an initial cash consideration of EUR8.9 million, and a deferred cash consideration of up to EUR1.1 million.
Denmark-headquartered DdD Retail provides a combined point of sale software and hardware product, focused on the fashion retail industry. It produced earnings before interest, tax, depreciation and amortisation of EUR1.1 million in 2015, on revenue of EUR6.2 million.
K3 Business Tech expects the acquisition to be earnings enhancing in its next full financial year.
"We are very pleased to announce the acquisition of DdD which marks an important step in our strategy to increase sales of products with a significant element of K3-owned IP. DdD is a well-established business which has developed a highly attractive, cloud-based software solution for retailers, particularly in the fashion sector. This acquisition represents a highly complementary fit, bringing IP and an extensive customer base delivering significant recurring revenues. We also see exciting cross-selling opportunities," said K3 Chairman Lars-Olof Norell in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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