K3 Acquires Microsoft Dynamics AX Partner Sense Enterprise Solutions

UK-based ERP and supply chain software provider K3 announced that it has 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 will acquire 40 Sense customers.

"I am delighted to announce the acquisition of Sense," said Andy Makeham, Chief Executive of K3, in a statement. "Microsoft Dynamics AX is strategically important to K3 as a fast growing market. Sense was one of the first AX partners in the UK and has established a strong reputation in the marketplace. It is also the only member of AxPact in the UK, generating significant new business wins, and this will further support the increasingly global nature of K3's implementations."

Following the acquisition, K3 said believes its AX business unit will be the largest AX provider in the UK. K3 also sees excellent opportunities to cross-sell its products and services to Sense's existing customer base.

For the year ending Dec. 31, 2010, Sense generated sales of £1.8 million (approximately $2.9 million), of which approximately 33% were recurring revenues, and had an underlying operating profit of £0.3 million.

 The acquisition also expands K3's portfolio of intellectual property and brings K3 exclusive UK membership to AxPact, an international network of 27 AX partners which collaborate on multi-national projects. The acquisition provides K3 with additional skills and a substantial user base that will significantly improve the profitability of its AX unit, according to Makeham.

K3 today also announced ...