Berkshire-based Kerridge Commercial Systems, specialising in business management solutions to the distributive industry, has acquired Tyne and Wear-based Datawright, a provider of material requirements planning solutions specifically designed for the manufacturing sector. This is KCS’ second acquisition since completing the original management buyout with financing from NVM Private Equity in 2010.
Berkshire based Kerridge Commercial Systems (KCS), specialising in business management solutions to the distributive industry, has acquired Tyne and Wear based Datawright — a provider of Material Requirements Planning (MRP) solutions specifically designed for the manufacturing sector.
This is KCS’ second acquisition since completing the original management buy-out with financing from NVM Private Equity (NVM) back in 2010. KCS successfully acquired Strategix in October 2011 to strengthen its Enterprise Resource Planning (ERP) solutions and services. Since then, the KCS management team has recognised that many customers in the distribution industry are extending their activities along the supply chain and have a growing need for manufacturing functionality and solutions. The acquisition of Datawright will allow KCS to reach new customers and offer additional MRP capabilities to users of its leading product, K8.
Ian Bendelow, CEO of KCS comments: “We are very pleased to have concluded this strategic acquisition. Both companies have known each other for many years and share a common technology platform. We will immediately set about integrating the two solutions to create a single platform under the new name of KCS Manufacturing Solutions and rebrand the product to reflect the fact that we now have a very clear product strategy. With NVM’s continued support we are building our business to take full advantage of global market demand.”
NVM originally invested £9 million in the buy-out of KCS to support the management team’s growth strategy to diversify into new vertical and geographic markets and sustain a leading market position. This is being achieved through a combination of organic growth and consolidation. In the last year, KCS achieved turnover of more than £25 million and currently employs around 250 people at offices in the UK, Ireland, The Netherlands and South Africa. They support over 700 customers at more than 3,500 locations across Europe, the Middle East, Africa and Australasia.
Clive Austin led the original deal for NVM and sits on the board of KCS. He comments: “Ian and the team have done a great job developing the business in the two years since the buy-out. The first acquisition was handled extremely well and we have high hopes for Datawright. We believe the acquisition has strong synergy benefits and will enable KCS to offer new functionality which is increasingly important to its customers. We are delighted to support this latest step in the growth of the business.”
HSBC Thames Valley Banking Centre – Brian Large (Banking)
Addleshaw Goddard – Mike Hinchcliffe (KCS’ legal adviser)
Baker Tilly – David McCulloch (Financial due diligence)
Eversheds – Paul Castle & Catherine Concannon (NVM’s legal adviser)
Latitude – Steve Hacking (Commercial due diligence)
PA Consulting Group – Peter Lumley (Technical due diligence)
Sintons – Adrian Dye – (Datawright’s legal adviser)
Tait Walker – Michael Smith (Datawright’s financial adviser)
Notes to editors:
Imagery inclusions: Ian Bendelow of KCS and distribution related imagery
Kerridge Commercial Systems (KCS) is a specialist software and services company with a unique depth of knowledge and experience in the distributive trades, comprising wholesalers, distributors, merchants and retailers. They have been in this business for over 25 years, delivering software to meet the specific requirements of this sector, from small traders to multinational enterprises. Today, the company offers a comprehensive solution based on the K8 business management system, with a range of supporting and managed services. KCS is an Oracle Gold Partner and Microsoft Partner. http://www.kerridgecs.com/
NVM Private Equity Limited (NVM) is independently owned with over 27 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £200 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2 million and £10 million in each transaction.
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