K3 Business Technology buys Merac for £1.27m

K3 Business Technology, a software provider to the retail, manufacturing and distribution sectors, has bought Merac for £1.27m, to enhance its presence in the leisure and visitor attractions sector.

The initial consideration for Merac, an author of electronic point-of-sale and management system for the leisure sector, is £1.27m payable in cash with a further consideration of up to £175,000 in 2017, dependent on performance.

K3 said the acquisition was agreed on a debt free/cash free basis and is expected to be immediately earnings enhancing. The company said it was part of its strategy to develop its portfolio of wholly-owned intellectual property products.

Merac made £1.24m revenue in the financial year ending 31 March 2016 and an adjusted profit before tax of £330,000. Its net assets were £300,000.

Merac’s solution MStore covers ticketing, hospitality and retail, as well as admission control, bookings and event management.

K3's chief executive David Bolton said: "We are very pleased to announce the acquisition of Merac, which has developed a leading solution for the visitor attractions and leisure sector.

“Its solution, MStore, is used by English Heritage and across many high profile visitor attractions, such as Stonehenge, Longleat Safari Park and Castle Howard. Its addition is entirely complementary and increases our existing presence in the sector as well as adding to our portfolio of wholly-owned intellectual property."

Shares in K3 Business Technology were down 1.19% to 333p at 1221 BST.