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ERP specialist K3 Business Technology Group has acquired some of the assets of the Integrated Business Systems (IBS) division from Maxima Holdings.
The cash deal is worth £1.4m and K3 will use the additional technology to complement its manufacturing software division because IBS has a customer base including many household names in that sector including Dunlop Oil & Marine and the Thales Group.
For the year ended 31 May 2011 IBS delivered an operating profit of £0.62m on a turnover of £1.37m and around three quarters of its revenue comes from maintenance and support income.
K3 has stated its strategy is to add customer bases with the cross-selling potential to its business and Andy Makeham, CEO of the firm, said that IBS would work well with its existing operations.
"It 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 said.
Maxima released a statement indicating it will use some of the proceeds of the sale to pay back the bank.
"The financial impact of the sale on the Group will be finalised and reported in the Group's half year results announcement expected in February 2012 and the cash received will be used to repay part of the Company's banking facilities."