Salford software company K3 Business Technology Group has acquired a Scandinavian tech firm in a deal worth up to £7.9m.

The company has reached a conditional agreement to buy Denmark-headquarted Retail Support International ApS (known as DdD Retail) for an initial consideration of €8.9m (£7m) and a deferred consideration of up to £0.9m based on meeting post-acquisition performance targets.

K3 chairman Lars-Olof Norell

K3 chairman Lars-Olof Norell

To fund the acquisition and take advantage of new product opportunities, K3 has placed over four million new shares in a bid to raise £13.5m.

Established in 1989, DdD’s software and hardware solutions are used by around 750 customers across 1,800 stores in Denmark, Germany, Sweden and Norway.

Customers include sportswear chain Esprit and women’s fashion brand Saint Tropez, and it turned over €6.23m (£4.9m) in the year ending December 31st, with EBITDA of €1.08m (£850k).

K3 chairman Lars-Olof Norell said: “This acquisition represents a highly complementary fit, bringing IP and an extensive customer base delivering significant recurring revenues. We also see exciting cross-selling opportunities.

“We look forward to the management team joining the Group and are also delighted that our placing to raise £13.5m has been well supported by both existing and new institutional investors.”