K3 Business acquires Willow Starcom from Access Intelligence

21st Apr 2015 15:53

Business systems supplier K3 Business Technology Group has acquired IT support services company Willow Starcom from Access Intelligence PLC for £1.8m in a cash deal.The London-listed group said the deal will bolster its earnings in the company's first full year of owning Greater Manchester-based Willow.In the year to 30 November, Willow generated £2.7m of revenue, while earnings before interest, tax, depreciation and amortisation amounted to £370,000 and pre-tax profit of approximately £100,000 and the group's net assets at the end of the year totalled £900,000."The addition of Willow Starcom will broaden our existing offering within hosting and managed services and brings additional expertise and skills to our team," K3 chief executive David Bolton said."We believe that there is significant potential to expand our hosting and managed services activities and this acquisition is part of our strategy to realise that growth opportunity."Access Intelligence said it will used the proceeds of the sale, excluding costs and £460,000 worth of staff settlement agreements, to support growth."The divestment of Willow from the group is in line with the group's strategic focus as a software-as-a-service provider," group chairman Michael Jackson said in a statement.K3 Business shares were up 0.44% to 226.00p at 16:10 on Tuesday.