- K3 Business Technology Group says it has reached a conditional agreement to purchase Retail Support International ApS, known as DdD Retail (DdD), on a cash free/debt free basis for up to EUR10m (c.GBP7.9m) comprising:

- initial cash consideration of EUR8.9m (c.GBP7.0m);

- deferred cash consideration of up to EUR1.1m (c.GBP0.9m) based upon agreed post acquisition performance targets.

The Company added:

- DdD provides a proprietary combined point of sale ("PoS") software/hardware solution, focusing on the fashion retail industry.

- Established in 1989 and headquartered in Denmark, DdD operates in Denmark, Germany, Sweden and Norway and has approximately 750 customers across 1,800 stores. Customers include Esprit, the sportswear chain and Saint Tropez, the women's fashion brand.

- DdD's software suite is designed as an easy-to-install, 'plug and play' solution which is delivered via the cloud and licensed on a monthly, "consumption" basis.

- Placing of 4,090,909 new Ordinary Shares ("Placing Shares") to raise GBP13.5m at a price of 330 pence per Ordinary Share to fund the DdD acquisition, additional product opportunities, working capital and costs associated with the Placing and Acquisition.

- Acquisition, together with the full extent of the Placing, is expected to be earnings enhancing in K3's next following full financial year.

Lars-Olof Norell, Chairman of K3, commented:

"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.

We look forward to the management team joining the Group and are also delighted that our placing to raise GBP13.5m has been well supported by both existing and new institutional investors.

We intend to continue to look for complementary bolt-on acquisitions and will further refine our overall offering as we seek to accelerate the Group's development."

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