In 2008 , K3 BTG acquired the Syspro ERP specialist McGuffie Brunton for £12.5m. Now it is focusing on the synergy of the seven man cloud applications supplier, DigiMIS.

K3 BGT says demand for outsourcing IT maintenance was increasing and CEO Andy Makeham (right) added: “The inclusion of DigiMIS in our service mix will provide us with a clear competitive advantage.”

Founded in 2005, DigiMIS CE0, Steve Donahue says DigiMIS was the spin out from part of a large IT operation for a manufacturing company. It specialises in offering cloud services applications software including ERP solutions with clients in Europe, US and Australia.   K3 operations from SME to large manufacturing and retail organisation are focused in the UK and Europe.

Donahue said the deal "provides good synergy for DigiMIS with the partner infrastructure and delivery mechanisms."

K3 BTG is reported to be initially paying £803,000 in cash, loan notes and shares for DigiMIS, with a further consideration of up to £1.325m based on the company's performance over the next two years.

The firms already have a link as DigiMIS provides hosting services to several K3 customers. K3, which supplies business planning and management software to manufacturers and retailers, said the acquisition was strategically important as it would enable the group to build its managed services offering.

Customers of DigiMIS, include optical components manufacturer Gooch and Housego, and engineering company Doncasters Group. The company generated profits before tax of £200,000 in the six months to December.