Salford software firm K3 Business Technology Group has bought out a Denkmark retail software firm for £7.9 million.
DdD Retail, the trading name for Retail Support International ApS, provides hardware and software products for the fashion industry.
K3, which is headquarted on Kansas Avenue in Salford Quays, said it would fund the acquisition and gain some working capital by placing 4.1 million shares to raise £13.5 million.
Shares in the listed Salford company have today slipped back 0.4% after seeing a 1.9% boost on Monday in the wake of the news.
DdD had a turnover of £4.9m last year.
K3 said it had seen a significant growth in cloud-based services revenue, with net debt reduced by £1.7 million to £10.4 million in the last six months, and pretax profit spiking 27% year-on-year to £2.3 million.
K3 Chairman Lars-Olof Norell said in a statement: “We are very pleased to announce the acquisition of DdD which marks an important step in our strategy to increase sales of products with a significant element of K3-owned IP.
“DdD is a well-established business which has developed a highly attractive, cloud-based software solution for retailers, particularly in the fashion sector.
“This acquisition represents a highly complementary fit, bringing IP and an extensive customer base delivering significant recurring revenues. We also see exciting cross-selling opportunities.”
Main image: K3 Chairman Lars-Olof Norell
