ERP reseller K3's December acquisition rampage has continued with its purchase of Retail Systems Group (RSG).
Microsoft Dynamics partner RSG banked an operating profit of £300,000 on sales of £2m for its financial year to 30 June 2011.
K3 will stump up an initial consideration of £2.78m – £1.5m of which relates to surplus cash in the West Midlands-based firm – plus an earn-out of £0.2m over the next two years.
It marks K3's third acquisition this month, its other two conquests being the Integrated Business Systems unit of Maxima (for up to £1.6m) and continental outfit Ubisoft BV (for up to £2.77m).
RSG has about 200 customers, including Aston Martin and the National Portrait Gallery, generating 40 per cent of its sales from recurring revenue.
K3 chief executive Andy Makeham 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."
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