The Walton-on Thames, UK-based company said the deal would be immediately earnings-enhancing. Landsteinar, which has 40 customers and supports 300 stores in 12 countries, recorded pre-tax income of 2.2m euros ($3m) on revenue of 6.1m euros ($8.3m) in the year to December 31, 2006. One of its major assets is that it holds the worldwide rights to software modules specifically designed for global home furnishings business Inter IKEA System.
K3 chief executive Andy Makeham said the deal is complementary to its existing retail software business and the two companies sell the same software products. Landsteinar also has a strong presence in the fashion and home retail sectors, which K3 sees as key growth markets.
In 2004, K3 acquired retail software provider Alpha Landsteinar, which is now its retail software division. The link between this and the latest acquisition is that both companies licensed Microsoft-based retail software from Icelandic company Landsteinar.
K3 is paying 9.87m pounds ($19.9m) in cash and shares up front and up to 3.74m pounds ($7.5m) based on performance up to 2009.
