Pinnacle Computing has picked up K3’s Sage business for £1.68 million.
The deal should complete next month. In the fiscal year to 30 November 2020, the Sage business generated revenue of £5.2 million and a pre-tax loss of £1 million. Current recurring revenue is £3.1 million, with gross profit of £1.5 million. Net liabilities stood at approximately £1 million on 30 May 2021.
In April 2020, K3 placed its loss-making UK Dynamics business into administration, leaving the group focused on profitable core units. The channel outfit flogged Starcom Technologies in February 2021, for £14.7 million to Node4.
K3 expects the sale to strengthen its balance sheet and generate pre-tax profit 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.
Platinum Sage partner Pinnacle has used acquisition as a means of expanding its footprint and seems to like picking up Sage specialists.
Earlier this summer, the firm moved for the Sage business of TMS Scotland, based near Falkirk, adding more depth to its operations north of the border.
Pinnacle managing director James Spencer 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.”
