In the past I have often (perhaps mischievously) suggested that mid-market ERP player, K3 Business Technology Group, ought to buy rival Maxima, as it appeared it me that there were some bits that K3 CEO Andy Makeham could usefully use in his business. And once entrepreneur Ian Smith had taken the reins at Maxima and declared his intentions to strip it back to its bare essentials (see Maxima minimises!), I thought it would be an opportunity too good to miss.
And so it has come to pass that Makeham has bought Maxima’s Integrated Business Systems (mid-market manufacturing sector ERP) activities to merge in with K3’s own manufacturing software division. K3 will pay up to £1.4m for IBS, about 1x revenues and 2.3x ‘adjusted’ EBITA (45% ‘adjusted’ operating margin!).
The acquisition comes just a week after K3 acquired bits of Netherlands-based retail store solutions firm, Unisoft (see K3 goes Dutch again with Unisoft), proving again that it is still ‘business as usual’ for Makeham despite the mooted NEDBO (non-exec director buy-out!) bid by K3’s top shareholder PJ Claesson (see Claesson looks to K3 for hosting panacea). I am sure we will hear more news from both K3 and Maxima at opposite ends of the M&A chain, though not necessarily with each other.