K3 Business Technology Group plc (“K3”), the AIM-listed supplier of Microsoft business solutions, has acquired Hampshire-based IT services business, Panacea Limited (“Panacea”) from Livingbridge.
Clearwater International’s technology team, led by head of technology, Carl Houghton, handled the sale of Panacea on behalf of stakeholder, Livingbridge. DLA Piper’s Manchester office provided legal advice to the private equity house. Hammonds advised K3.
Panacea provides and supports end-to-end business applications, working with partners such as Microsoft, Sage and SAP. Established in 1986, the business was acquired by Livingbridge in May 2006 and has since expanded its application portfolio. K3, which was established in 2001, is one of the UK’s leading suppliers of Microsoft-based business solutions and a member of Microsoft’s Inner Circle Club, which is reserved for the top 60 partners worldwide. The Salford-based company supplies enterprise resource planning (ERP) software predominantly to the retail, manufacturing and distribution sectors. K3 supports approximately 3,000 customers in over 20 countries.
The deal will further build on K3’s existing product stack, whilst increasing its strong customer base and presence in the South of England. The deal brings together two of Microsoft’s top 10 Dynamics partners in the UK.
“While Panacea’s managed services offering is more extensive than K3’s, Panacea has not, as yet, offered application hosting services to its customer base and we see an opportunity to bring our hosting offering to its customers. Uptake of this will add to K3’s recurring annual revenues, which currently accounts for approximately 40% of K3’s total income.”