Last checked at 8 Mar 2010 07:00
KBT
8 March 2010
K3 Business Technology Group plc
("K3" or "the Group")
Announces
Acquisition of Fashion Software Provider, Pebblestone Netherlands
K3, which provides Enterprise Resource Planning ("ERP") solutions to the supply chain industry, is pleased to announce that it has agreed terms to acquire the trade and certain assets of Pebblestone Netherlands ("Pebblestone"), a leading European provider of Microsoft Dynamics ERP solutions for the fashion industry. The initial consideration for the acquisition is €1.4m (£1.26m), payable in cash, with a deferred consideration of €0.6m payable over the next five years.
The deferred consideration of €0.6m, payable in cash over the next five years, carries a coupon of 6% until settled. After tax deductions from future years, the total net consideration for the acquisition is €1.5m.
Established in 1995 and based in Rotterdam, Holland, Pebblestone is wholly focused on the fashion and apparel sectors and supplies Microsoft Dynamics ERP systems and specialist Pebblestone software modules to fashion wholesalers and garment manufacturers. The business has approximately 140 customers, including Levi, Just Brands, Claudia Strater, Van Bommel, Euretco and Supertrash/2StepzAhead. It is also a member of Microsoft's President's Club. For the year to 31 December 2009 and on a pro forma basis, Pebblestone generated revenues of €3.92m (£3.54m) and a pre-tax profit of €0.54m (£0.49m).
Pebblestone is a highly complementary synergistic acquisition which will be relocated and readily integrated with K3's existing Dutch Retail Solutions business, K3 Nederland (which provides Microsoft Dynamics based business solutions to the retail sector). K3 believes that the combination of Pebblestone with K3 will help to accelerate the development of K3 Nederland, whose flagship customers include Inter IKEA System B.V ("IKEA"), the global home furnishings business, whilst also adding additional strength to the established fashion and apparel sector of the UK Retail solutions business. The enlarged business will offer a highly attractive, fully integrated combination of a market-leading ERP system, with software modules specifically designed for the fashion and retail sectors, and will be better placed to capitalise on the expansion opportunities available.
Andy Makeham, Chief Executive of K3, commented,
"Pebblestone is one of the best known providers of technology for fashion brands in Europe and its acquisition is an exciting development for K3.
"We have an increasing presence in the fashion sector both in Europe and the UK and the addition of Pebblestone will accelerate our strategic growth in this important market."
Enquiries:
| K3 Business Technology |
| Andy Makeham, Chief Executive |
| T: 0161 876 4498 |
| Group plc |
| David Bolton, Chief Finance Officer |
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| Canaccord Adams (NOMAD) |
| Simon Bridges |
| T: 020 7050 6500 |
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| Biddicks |
| Katie Tzouliadis/Sophie Lane |
| T: 020 7448 1000 |