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K3 seems intent on getting caught up in the rush to buy Christmas presents splashing out for its own chunk of high street expertise in the form of Retail Systems Group, just a week after it picked up a chunk of Maxima.
The acquisition of the ERP specialist is the third buy in a month following the Integrated Business Systems division from Maxima Holdings and Unisoft.
Retail Systems Group is a Microsoft Dynamics specialist and ERp player and cost K3 an initial £1.28m in cash with an additional payment of £1.5 million in respect of surplus cash in the business at completion.
The buy is seen as a way for K3 to get access to the smaller retail market and RSG also has an established managed services division which is attractive.
For the year to 30 June 2011, RSG generated sales of £2 million and an operating profit of £300,000. Approximately 40% of annual revenues are recurring, derived equally from managed services and maintenance/support.
Andy Makeham, Chief Executive of K3, said that the deal was another good acquisition: "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.
"In addition, it brings us strong recurring revenues, including from managed services, from a large, high quality customer base," he added.