Tue, 14 Mar 2023 | BUSINESS SALE
SaaS technology solutions firm Microlise Group has acquired transport management services (TMS) provider Vita Software in a deal worth £2.06 million as it kicks off an acquisition drive. The deal is the first of several targeted acquisitions following Microlise Group's 2021 IPO.
The deal represents a multiple of 8.24x Vita Software’s adjusted EBITDA of £0.25 million for the year to September 30 2022. Microlise will pay an initial cash consideration of £1.86 million for the company, on a cash free, debt free basis, funded from its existing cash reserves. A deferred consideration of £0.2 million will be payable after 12 months post-completion subject to any claims.
Vita Software was founded in 2012 and provides a range of order management products to operators in the fleet logistics space. The company’s products include resource and transport costing, invoicing solutions and subcontractor management.
The deal will see all existing staff retained, with business and product integration to begin immediately. The acquisition is expected to be immediately earnings enhancing, adding recurring revenue to the Microlise Group.
Microlise says that Vita Software’s TMS capabilities will provide both upsell and cross-sell opportunities and enable it to embed itself deeper into its existing customers’ operations. As Vita Software’s system is applicable to fleets of any size, the deal supports Microlise’s strategy of expanding its value proposition further into medium-sized fleets.
Microlise offers subscription services which manage safe, compliant and efficient transport movements, with tracking and execution of generated orders. The acquisition of Vita Software will provide the group with an enriched product offering.
Commenting on the deal, Microlise Group CEO Nadeem Raza said: "We are excited to announce the acquisition of Vita Software, as part of our strategic plans to grow the Microlise product portfolio using funds raised via our IPO. This is the first of a number of targeted acquisitions that are being progressed, driving our long-term plan to offer a comprehensive suite of solutions that cater to fleets of all sizes across our strategic geographies.”
“Through combining TMS technology with our existing offerings, we are providing our customers with an accessible and enriched end-to-end solution that is designed to optimise operations, increase cost visibility, and improve profitability.”
“This acquisition will also provide us significant opportunities for upselling and cross-selling, enabling us to further strengthen our relationships with our customers and reinforce our position as a leading provider of transport technology solutions.”
“We remain committed to delivering innovative products and services that add value to our customers' businesses, and we look forward to leveraging our expanded capabilities to achieve further growth and success."
The acquisition comes amid intense dealmaking within the logistics space. Despite logistics operators struggling with headwinds including inflation and supply chain disruption, many have turned to M&A activity as a means of combating these challenges, with deals enabling them to build scale and geographic footprint, expand their service offering and increase their uptake of technology.
With technology seen as a key means of improving efficiency and circumventing ongoing supply chain issues, demand for the types of fleet and order management services offered by companies such as Vita Software has made these companies sought-after acquisition targets.
Read about the increase in planned M&A activity among UK logistics operators.
Find out how companies are using M&A to tackle supply chain challenges.
Find businesses for sale here.
If you are looking for an exit, we can help!
Established geographic software business with a strong client base and steady maintenance revenue stream.
An unparalleled chance to own a thriving Ag-Tech company with a robust market standing. The business is renowned for its pioneering role and leadership in the agricultural technology sector.
An opportunity has arisen to acquire a reputable IT support and development services provider with a UK-wide client base and a proven record for innovation and resilience in the constantly evolving IT sector.
20
|
Jun
|
£20m-turnover civils business falls into administration | ADMINISTRATION
A Bedford-headquartered civil engineering firm has fallen in...
20
|
Jun
|
Henley-on-Thames solicitors acquired by leading Thames Valley group | BUSINESS SALE
Blandy & Blandy, a leading law firm in the Thames Valley, ha...
20
|
Jun
|
Northumberland steelwork specialist acquired out of administration | BUSINESS SALE
Armson Engineering, a pipe and steelwork fabricator in North...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.