ERP developer McGuffie Brunton, which has served UK manufacturing with Syspro ERP systems for the last 26 years, has just been acquired by K3 for £12.5 million.
Two years ago K3 bought Information Engineering, former co-owner of the Syspro brand in this country, and most will see this news as a logical and elegant conclusion, both for the participants and users of their software.
Acquiring McGuffie puts the entire Syspro suite and brand in K3’s hands – and immediately after McGuffie’s best year ever. Sales of Syspro rose for McGuffie by 5% last year, pushing turnover up to £6.3 million.
With immediate effect, Howard Joseph moves up from sales director of McGuffie Brunton to managing director, while former MD Paul Murray retires. Pat McCarthy, former managing director of Information Engineering, continues at the help of K3’s manufacturing business.
During the summer McGuffie Brunton and K3 are due to become a single entity, at which point the new organisation will trade as K3 Syspro. Pat McCarthy will then become chairman, with Howard Joseph managing director.
“For now, it’s business as usual,” says Joseph. “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,” he adds.
Says McCarthy: “The acquisition of McGuffie Brunton is a great move and great news for customers. It makes K3 a very strong player in the manufacturing sector and gives us a fantastic base to reach further into major projects and new markets. Going forward we will build on this to maximise our market position.”
Andy Makeham, K3 Business Technology Group CEO, adds: “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.”