LONDON, UK: K3 Business Technology Group, which provides mission‐critical software and cloud solutions, announced the sale of the business and assets of its non-core Sage Business to Pinnacle Computing for £1.68 million.
Completion is expected in early October 2021, following a TUPE consultation process in respect of the transfer to Pinnacle of Sage Business employees, and the disposal consideration is subject to a downward adjustment of circa £0.2m in respect of any restructuring costs that Pinnacle may undertake immediately following completion.
In the financial year to 30 November 2020, the Sage Business generated revenue of £5.2 million and a pre-tax loss of £1.0 million. Current recurring revenues are £3.1 million with gross profit of £1.5 million. Net liabilities stood at approximately £1.0 million at 30 May 2021.
The disposal is in line with the Board’s strategy of focusing resources on key higher-margin products and markets, and follows the sale of other non-core businesses, as previously announced. The Disposal proceeds will further strengthen K3’s balance sheet, and generate a profit pre-tax of approximately £1.6 million, which will be accounted for as an exceptional contribution to trading results in the current financial year ending 30 November 2021.
Tom Crawford, Chairman of K3 Business Technology Group plc, commented: “The sale of our Sage Business is another step forward as we continue to sharpen K3’s focus and simplify its operations around its higher margin core products and strategic markets. Following this transaction and other disposals over the last two years, the Group is more streamlined, market-focused and strategically better positioned.”
James Spencer, Managing Director of Pinnacle said, “The Sage Business will transition very smoothly into our operations, benefiting from our scale and depth of focus. We are excited for both the team and customers to join Pinnacle to bolster our operations and delivery within the Sage markets”
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16 Sep, 3:50 pm GMT+1 ·Disclaimer