Kalamazoo drives double deal bargain

Birmingham-based Kalamazoo Computer Group has expanded its presence in the motoring financial sector after acquiring US company CFS International in a deal worth #3.5 million cash.

Privately owned CFS traded as Coin Financial Systems in the UK. It specialises in computer systems for finance and insurance-related activities for car giants Ford and Jaguar and has a customer base of more than 90 per cent of all Ford main dealers.

The firm opened a Paris office last year, which supports finance and insurance operations for 370 Ford dealers in France, Spain and Italy.

Andrew Peart, marketing director at Kalamazoo?s computer division, said the acquisition strengthened the reseller?s product portfolio for motor dealers and fitted in with its desire to be dominant in the global retail car industry.

Kalamazoo paid #2.5 million on completion of the deal and paid off loans amounting to #531,000. The balance of #1 million will be paid in cash one year from finalising the purchase.

The buy was quickly followed by a second, when Kalamazoo bought a 25 per cent share in Copenhagen-based software provider IT2000 for #300,000. IT200, which previously traded as Ambrasoft, is a supplier of software systems to the retail automotive market in Denmark.