K3 Acquires Microsoft Dynamics NAV Consultancy Clarita Solutions

UK-based ERP and supply chain software provider K3 announced that it has acquired Clarita Solutions Ltd, a provider of Microsoft Dynamics NAV solutions to the retail and distribution markets for £0.82 million is cash. K3 said it is also assuming certain financial obligations up to £230,000.

After the acquisition, K3 said it will rapidly integrate Clarita, which is already an established distributor of K3's Pebblestone fashion distribution software solution, into its existing operations.

For the year ending December 31, 2010, Clarita had sales of £3.1 million and an operating profit of £0.25 million. Approximately one third of revenues are recurring and the business has approximately 70 customers, according to K3.

"Clarita is a well-established NAV reseller in the UK focused on the same market sectors as K3," said Andy Makeham, Chief Executive of K3, in a statement. "It therefore represents a highly complementary acquisition, which we can readily integrate into our existing operations. Its addition brings us £1 million of recurring revenues and another 70 customers to whom we can offer further software services and solutions, including hosting."

K3 also recently acquired Sense Enterprise Solutions Ltd., a provider of Microsoft Dynamics AX ERP solutions to the manufacturing and distribution markets, for £1.2 million cash.  K3 said it was paying £350,000 out of respect of surplus cash in the business at completion of the acquisition and it will pay another £0.9 million based on certain performance criteria. As part of the deal, K3 acquired 40 Sense customers.