K3 Business Technology Share Discussion Threads

[orange1] 26/1/2012 16:34

From the December announcement:

"The Board has today requested that the Panel, pursuant to Rule 2.6(c) of the Code, extend the current deadline of 29 December 2011, as referred to above. Discussions in relation to a possible offer for the Company by Mr Claesson are at an early stage, as is the strategic review being undertaken by Deloitte Corporate Finance. In light of the progress that has been made in relation to the possible offer, the Panel has agreed that Mr Claesson must by no later than 5.00 p.m. on 26 January 2012, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that he does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code."

[yump] 26/1/2012 16:20

Can they keep doing that - I have no idea ?

[orange1] 26/1/2012 16:14

Could be a repeát of December with a further extension of time being granted.

[stegrego] 26/1/2012 12:18

5pm deadline so could come after hours... In which case tomorrow could see a steep rise or fall?

You would have thought they would have announced by now if it definitely wasn't going to happen, so must still be possible. Last minute thing though...

[rogash] 26/1/2012 12:07

Decision day to-day.

[philo124] 20/1/2012 08:11

£2.40 would be a fair price based on eps forecasts now that market sentiment has changed.

[philo124] 19/1/2012 15:34

Good. On;y 27k traded in small trades. I will very pleased if we can get to 200p, although i kmow this isn still disappointing relative to our previous targets.

[yump] 19/1/2012 14:34

Well its not taking much to shift it, so 200p with no further news wouldn't be a surprise.

[eagle eye] 19/1/2012 14:32

A price below last summer's placing would be a poor outcome, and not satisfactory to institutions who came aboard. So I suggest below 200p would be a poor outcome.

[yump] 19/1/2012 09:19

Be interesting to know what a 'strategic review' involves when its done by Deloitte Corporate Finance. If I wanted a strategic review done of a business, I'd go to marketing or management consultants, not corporate finance.

So presumably its a financial review. Which might involve what in this case ??

[stegrego] 11/1/2012 12:43

1.85 max comes from where?

[philo124] 11/1/2012 12:22

£1.85 MAX unfortunately,imo; 50% above recent low.

[rogash] 11/1/2012 09:44

I can't think other than there must be an offer for the company.How much above the current price who knows?But the price has been rock solid for weeks despite the selling.

[yump] 04/1/2012 10:54

Is it coincidence or is there some possible reason for the spate of acquisitions following the 'bid' possibility announcements ?

ie. everything quite quiet and then all this happens within a short space of time.

I'm not smelling a rat - its more curiosity as to whether the acquisitions make a bid more or less attractive and therefore whether they've been accelerated in some way. That seems unlikely as it must have taken quite a while to get the takeover agreements sorted - although they've all appeared at the same time, which in itself is unusual.

[philo124] 29/12/2011 08:36

Yep,.the rns yesterday is interesting- exercise price of options etc.

[orange1] 29/12/2011 08:30

Announcement regarding a possible offer due today but from what was said on 01.12.11 it looks like it will simply be an extension of the offer period:


"In accordance with Rule 2.6(a) of the Code, Mr Claesson must, by not later than 5.00 p.m. on 29 December 2011, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that he does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code. The Company confirms that it currently intends to approach the Panel for such an extension to this deadline in due course."

[greengiant] 20/12/2011 08:05

All these acquisitions seems sensible and are at multiples lower than the industry average. All seems remarkably sensible

gg

[dpmcq] 20/12/2011 07:46

Another -
RNS Number : 2882U

K3 Business Technology Group PLC

20 December 2011

AIM: KBT

K3 Business Technology Group plc

("K3" or "the Group")

Announces

Acquisition of Retail Systems Group

K3, which supplies and supports Enterprise Resource Planning ("ERP") software to the supply chain industry, is pleased to announce that it has completed the acquisition of Retail Systems Group Ltd ("RSG"), one of the leading providers of Microsoft Dynamics 'RMS' to retailers in the UK and Ireland. The initial consideration for the acquisition is GBP1.28 million payable in cash on completion, with an additional payment of approximately GBP1.5 million in respect of surplus cash in the business at completion. The initial consideration includes a retention of GBP0.15m for the period of one year following completion to cover any warranty and indemnity claims. An earn-out of up to GBP0.2m is also payable over the next two years, dependent on certain performance criteria.

The acquisition offers K3 access to the significant market for smaller retailers, complementing the Group's existing mid-range retail software offering. RSG also has a well established managed service division which will further expand K3's own growing managed services division. RSG has approximately 200 customers, including Aston Martin, Highgrove House, Triumph and the National Portrait Gallery.

For the year to 30 June 2011, RSG generated sales of GBP2 million and an operating profit of GBP300,000. Approximately 40% of annual revenues are recurring, derived equally from managed services and maintenance/support. A further 35% of annual revenues are typically from additional sales to existing customers.

Andy Makeham, Chief Executive of K3, said,

"RSG represents another excellent acquisition for K3. We already have an established business delivering retail software solutions to mid-tier retailers and RSG will extend our reach into the substantial small retailer market.

In addition, it brings us strong recurring revenues, including from managed services, from a large, high quality customer base."

[dpmcq] 15/12/2011 07:29

Another aquisistion -

RNS Number : 0168U

K3 Business Technology Group PLC

15 December 2011

AIM: KBT

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group")

Acquisition

K3, which supplies enterprise resource planning ("ERP") software, hosting and managed services to the supply chain industry, is pleased to announce the acquisition of certain assets of the Integrated Business Systems division ("IBS") from Maxima Holdings plc. The initial consideration for the acquisition is GBP1.4 million in cash, with a retention of GBP0.2 million.

IBS provides its market-leading ERP system to large Make to Contract manufacturers, with a blue-chip customer base including Dunlop Oil & Marine, Rockwell Automation and Thales Group. For the year ended 31 May 2011, IBS achieved an operating profit of GBP0.62 million on sales of GBP1.37 million. Over 70% of revenues are recurring, derived from maintenance and support income.

The business represents an excellent fit with K3's manufacturing software division and will be easily integrated into existing operations. Furthermore, the acquisition is in line with the Group's strategy to add profitable customer bases with significant cross-selling opportunities.

Andy Makeham, CEO of K3, commented,

"I am delighted that we have completed the acquisition of IBS. It is a highly complementary fit for our existing manufacturing software division and, in line with our strategy, it brings a prestigious user base where we see strong cross-selling opportunities for additional services and upgrades."

[yump] 13/12/2011 18:05

Missed this completely !
Seems a reasonably cheap acquisition from the revenue point of view and possibly from a profit view as well.

Certainly not a bad time to build up your business by acquisition if you can - given that quite a few may well be struggling.

RNS Number : 5654T

K3 Business Technology Group PLC

08 December 2011

AIM: KBT

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group")

Acquisition of Unisoft BV

K3, which provides and supports Enterprise Resource Planning software, hosting and managed services to the supply chain industry, is pleased to announce that it has acquired certain assets of Unisoft BV ("Unisoft"), a leading provider of retail Point of Sale solutions in Holland and Scandinavia. The acquisition is for an initial EUR0.5 million in cash, with further consideration of up to EUR1.0 million payable in cash, dependent on certain criteria. In addition, an earn-out element is payable over the next three years, based on performance, of up to a maximum value of EUR1.27 million.

Unisoft has 350 customers, predominantly in Holland, including Dixons, O'Neill, T-Mobile and Pepe Jeans. It generates annual revenues of c.EUR4.3m, 45% of which are recurring, derived from maintenance income. A further 35% of revenues per annum typically are from additional sales to existing customers. Following the acquisition, Unisoft is expected to contribute an annualised operating profit of approximately EUR0.4m.

The Unisoft business is complementary to K3's existing successful Dutch retail operation, and will create cross selling opportunities for K3's existing retail solutions. Following the acquisition, Unisoft will be integrated into K3's Dutch operations.

Andy Makeham, Chief Executive of K3, commented,

"Unisoft is a natural extension of our existing European retail operations and an excellent acquisition for K3. We look forward to working together with the team to grow the business further."

[philo124] 07/12/2011 07:55

Another 35p please!

[davidwilkin] 02/12/2011 07:19

Lol Tole, have to confess to selling mine yesterday at 160.3 and 158.2, decided not to wait for the long game, and was surprised no buyers came in at all, 160p seems to be the figure, unless another bidder comes in.

[tole] 01/12/2011 19:46

Wow. Well done all... Just me who's a bit gutted not getting any orders filled at sub 120p... Thought I was gonna get my chance the other day when the offer price drifted back down.
Note to self... Stop being a penny pincher :))

[greengiant] 01/12/2011 13:06

My point here is not whether or not this is being "stolen" but rather that the directors are being proactive. After all, they can only do so much to affect the price, it is ultimately the market that has Set the price. What is so refreshing is that the directors are undertaking a strategic review where one of ge options is sell to the highest bidder. This s so counter intuitive to most companies in that these directors, by getting the best price, could be out of a job. How refreshing to see that directors are putting shareholder value ahead of personal gain.

This cannot be said for most companies and as such their actions should be applauded.

Gg