K3, which provides Enterprise Resource Planning ("ERP") solutions to the supply chain industry, says it is to acquire the DigiMIS, the provider of cloud computing services.
The acquisition is a strategically important one for K3, providing the Group with hosting capabilities, in line with the Board's objective to build K3's managed services offering. K3 also has an existing relationship with DigiMIS since DigiMIS provides hosting services to a number of K3 customers who deploy SYSPRO ERP and Microsoft Dynamics.
Based in Edinburgh, DigiMIS provides cloud application services from data centres in London, Edinburgh and New York, supporting SYSPRO systems in particular. It also supports a wide variety of other software applications, including Microsoft Dynamics and is a Microsoft Gold Certified Partner in hosting solutions and networking infrastructure.
The Board of K3 sees excellent synergies between its own customer base and DigiMIS. The attraction for companies to outsource the maintenance of their IT infrastructure is increasing and with over 1,500 customers, including some 500 SYSPRO customers, the acquisition of DigiMIS enables K3 to offer this service to its existing customer base as well as to new customers. DigiMIS's management will remain with the business in order to assist with its integration within the Group and to help accelerate the growth of K3's managed services operations.
Andy Makeham, Chief Executive of K3, commented,"The acquisition of DigiMIS is strategically important to us and I am delighted that DigiMIS will be joining the K3 Group. As demand from our customers for hosted solutions grows, the inclusion of DigiMIS in our service mix will provide us with a clear competitive advantage.
Longer term, this acquisition is another key building block in K3's strategy to be a provider of end-to-end cloud delivered enterprise solutions to the mid-market."
