(WEB HOST INDUSTRY REVIEW) — Business planning software provider K3 Business Technology Group (www.k3btg.com) announced on Tuesday it will pay up to $3.18 million (£2.13 million) for Scottish cloud computing services firm DigiMIS (www.digimis.com).
K3 said it would initially pay $1.2 million (£803,000) in cash, loan notes and shares for DigiMIS with a further consideration of up to $2 million (£1.325 million) based on the company’s performance over the next two years.
The companies already have a existing relationship, as DigiMIS currently provides hosting services to many customers of K3, which provides business planning and management software to manufacturers and retailers.
The acquisition should help K3 build its managed services portfolio.
DigiMIS provides a range of cloud computing services, including ERP systems, human Resource, and time and attendance systems, financial planning systems, email services.
The cloud firm earned $299,000 (£200,000) in profits before tax, the six months leading to December 2009.
K3 says the demand for outsourcing IT maintenance has seen a significant increase.
“The inclusion of DigiMIS in our service mix will provide us with a clear competitive advantage,” says Andy Makeham, CEO at K3 Business Technology Group.
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