The total consideration for the acquisition is 7.2m, payable in a mix of cash and shares. The initial consideration is 3.25m in cash and 2.9m in shares, of which 2.55m of cash and the 2.9m in shares is due on completion with 0.7m deferred for two weeks. The balance of 1.05m payable in cash due within the next twelve months. The cash consideration is to be funded from the Companys existing cash resources, an increased bank overdraft facility and a 750,000 unsecured loan from a company connected with PJ Claesson, a director of the Company.
Established in 1997 and based in Calne Wiltshire, Alpha Landsteinar sells, implements and supports Microsoft Navision Business Management software to companies, predominantly in the retail and distribution sectors. The software provides complete solutions for the management of business processes, including EPOS, inventory management, warehouse control and trends analysis.
Alpha Landsteinar supports over 150 customers, including Carpetright, Adidas, Dreams, Dobbies Garden Centres and Moss Pharmacy. For the year to
The acquisition of Alpha Landsteinar is a significant step forward in K3's ambition to extend its business base beyond the manufacturing sector and into the related markets of retail and distribution. K3's acquisition, in April 2004, of PSE Ltd, which provides retailers with Microsoft-based applications (under the 'Elucid' brand) to support multi-channel marketing, warehousing and supply chain logistics, was the first step in the execution of this strategy.
"This acquisition is an exciting development for us. Alpha Landsteinar is a fast-growing company, providing a first class, Microsoft-backed product offering. Its acquisition extends our footprint into retail and distribution, which we believe offer us good growth opportunities.
We are continuing to examine other acquisitions that will help us to achieve our objective of building a portfolio of Microsoft business based solutions for the manufacturing, retail and distribution sectors."