Acquisition allows company to play even bigger role in ERP market

Two competitors on the ERP systems market are now one, as McGuffie Brunton has been acquired by K3 Business Technology Group plc. ‘Syspro’ distributor McGuffie Brunton, who has consistently been one of the UK’s leading ERP vendors, said the acquisition by K3 would allow the company to play an even greater role as a solutions provider to the distribution and manufacturing sectors. With it’s acquisition of syspro distributor Information Engineering Group (IEG) in 2005 K3 already had a strong presence in the ERP mid market and this latest acquisition makes K3 one of the largest vendors in the sector. K3 Manufacturing now comprises McGuffie Brunton, IEG and Kewill ERP’s divison (acquired in 2000), with sales of some £15m, and 1,000 customers in over 30 countries. With its K3 Retail business the group has sales of some £30m, and is listed on the London Stock Exchange. Although it will be business as usual for McGuffie Brunton, the company’s co-founder and managing director, Paul Murray is to retire after 26 years running the business. He is succeeded as managing director by Howard Joseph (pictured), the current sales director, who has been with McGuffie Brunton for 19 years and has been a board member since 1992. Jeremy Hart remains technical director, and all other senior management and staff will stay with the company. As of Monday 2 April, McGuffie will be trading as K3 McGuffie Brunton. The two companies, despite being competitors, have a long history of cooperation with McGuffie Brunton working closely formerly with IEG, and latterly with K3, in the areas of product development and worldwide strategic planning, to ensure SYSPRO is well represented and supported in the UK. Joseph says: “There is no doubt our business is a natural fit for K3. Our products complement each other and there are high levels of synergy between two of the UK’s most successful ERP suppliers. With the UK’s two SYSPRO distributors serving the same market with the same products and with both companies operating from a Manchester base the joining of the two businesses has compelling logic.” Andy Makeham, chief executive officer of K3 Business Technology Group, added: “I think one of the surprising things about the UK ERP marketplace in recent years is why McGuffie Brunton and Information Engineering Group haven’t ‘come together’ sooner. It seems such an obvious development, and one that would undoubtedly benefit both companies. I am delighted to say that this has now happened, and I am also delighted that K3 are the catalyst.”