Managed services buy for K3

K3 Business Technology has made its latest move in the managed services sector through the £1.7m purchase of Panacea. K3 will also pay off a £500,000 overdraft. Hampshire-based Panacea made an underlying operating profit of £0.57m on annual revenues of £9.58m. Annual recurring revenues are £4.5m. Panacea also generates revenues from Microsoft Dynamics and Sage software solutions. The deal will double the size of K3's managed services operations with annual recurring revenues reaching £7m. Panacea has a wider offering than K3's existing managed services business but K3 chief executive Andy Makeham says that it does not offer application hosting services.