Loss-making VAR Maxima has sold off its Integrated Business Systems (IBS) division for £1.4m in cash to ERP specialist K3 Retail.
The deal follows on from Maxima's announcement back in October that it was planning to sell off its non-core business units after posting a loss of £9m during its last financial year.
The IBS division specialises in the provision of ERP products to manufacturing companies and generated an operating profit of £0.62m in the 12 months to 31 May 2011. It was valued at £1.3m.
In a stock market statement, Maxima confirmed that the deal will be used to repay part of the company's bank facilities.
"The disposal of the business and assets of [the] IBS sub-division has been completed for a gross consideration of £1.6m, of which £1.4m has been paid in cash and a further £0.2m is deferred, pending renewal of certain annuity contracts," it stated.
Andy Makeham, chief executive of K3, said IBS will be easily integrated into its existing operations and will provide the firm with ample cross-selling opportunities.
"[IBS] is a highly complementary fit for our existing manufacturing software division and, in line with our strategy, it brings a prestigious user base where we see strong cross-selling opportunities for additional services and upgrades," he added.
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