K3 steps up yuletide shopping spree

ERP reseller adds Microsoft Dynamics specialist Retail Systems Group to festive cart

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."