K3, which provides mission‐critical business software, cloud solutions and managed services, has sold its managed services unit, Starcom Technologies Limited, to Node4 Ltd, the Derby-headquartered IT infrastructure and services company backed by private equity investment firm, Bowmark Capital, in a £14.7 million deal.
In the unaudited results of the financial year to 30 November 2020, Starcom generated £10.2 million in revenues and pre‐ tax profits of £1.2 million. Its Group net assets at that date stood at £2.5 million.
The management team and staff of Starcom have transferred with the sale of the business together with its 280 customers. Under the terms of a transitional services agreement Starcom will continue to provide K3 and its customers with managed services for at least three years.
Adalsteinn Valdimarsson, CEO of K3 Business Technology Group plc, said: “Node4 is an excellent new home for Starcom with its focus exclusively on managed services, and the deal enables us to accelerate our strategy of growing own IP product revenue. We wish Starcom great success for the future.”
Andrew Gilbert, CEO of Node4 Ltd, said: “We are excited to be working with the Starcom team and their customers, with our shared mission of helping businesses with cloud‐led managed services. We would like to thank K3 for working with us during the acquisition and are looking forward to continuing the relationship by providing industry leading managed services.”