K3 said the transaction has generated more than £10m in profits
A Manchester software firm has sold its managed services unit to a private equity-backed company for almost £15m.
K3 Business Technology, which provides business software, cloud solutions and managed services, has completed the deal for Starcom Technologies with Node4, an infrastructure and services company backed by Bowmark Capital.
The total consideration for the disposal was £14.7m, including £500,000 cash on the balance sheet, paid entirely in cash on completion.
K3 has said the transaction has generated a “significant profit” on disposal, in excess of £10m.
In the unaudited results of the financial year to 30 November 2020, Starcom generated £10.2m in revenues and pre-tax profits of £1.2m.
The management team and staff of Starcom have transferred with the sale of the business together with its 280 customers.
Source: Business Live
