REG - Microlise Group PLC - Acquisition of Enterprise Software Systems (ESS)

MicroliseAnnouncement

30/11/2023 07:15

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RNS Number : 1391V  Microlise Group PLC  30 November 2023

30 November 2023

 

Microlise Group plc

("Microlise", "the Group" or "the Company")

 

Acquisition of Enterprise Software Systems (ESS)

 

Microlise Group plc (AIM: SAAS), a leading provider of SaaS based transport
technology solutions to fleet operators, is pleased to announce that it has
reached an agreement to acquire Enterprise Software Systems (ESS), a leading
provider of transportation management system ("TMS") solutions.

 

Founded in 1997 in the UK, ESS has a proven track record as a leading provider
of TMS solutions to enterprise clients such as Culina Group and GXO, helping
customers manage their transport operations from order receipt to invoice
creation. ESS is majority founder-owned, has 42 full-time employees and
delivered revenues of approximately £5.1m and an adjusted EBITDA of £1m
during the 12 months to 31 August 2023, with net assets of £2.6m.
Approximately 75% of revenue is recurring based on long-term contracts with
the balance made up of non-recurring set up fees.

 

Following the Group's Acquisition of Vita Software earlier this year, a
leading provider of TMS solutions to smaller and pallet/parcel network
customers, the acquisition of ESS strengthens Microlise's TMS offering and
introduces a market-leading TMS solution for medium and large fleet customers
into the Group's transport technology product offering.

 

Under the terms of the acquisition, Microlise will pay an initial £7.65m cash
payment due on completion and a maximum deferred contingent consideration of
£0.85m, payable in cash after 6 months from completion and dependent on any
claims. The vendors will also receive a further £3m from existing ESS cash
reserves on completion so that the Company acquires the business on an
effective cash and debt free basis. The acquisition is expected to immediately
enhance earnings on completion.

 

The Acquisition remains conditional upon no objections being raised by the UK
Competition and Markets Authority ("CMA"). The Board of Microlise expects this
process to conclude, and the Acquisition to complete, within 3 months of
today's date.  Further announcements will be made as appropriate.

 

Commenting on the acquisition, CEO Nadeem Raza said: "We are delighted to
announce ESS as our second acquisition of the year, and our largest to date.
The acquisition showcases our commitment to strengthening our TMS offering,
which we will now be able to provide to businesses of all sizes. ESS
immediately increases our recurring revenues, enhances our earnings, and will
provide numerous upsell and cross-sell opportunities. We look forward to
updating the market on progress in this respect and on the integration of ESS
into the wider Group."

 

 

 

 

 

 

 

 

 

 

For further information, please contact:

 

Microlise Group plc

Nadeem Raza, CEO

Nick Wightman,
CFO
C/O SEC Newgate

 

Singer Capital Markets (Nominated Adviser & Broker)

Steve Pearce / James Moat / Harry
Gooden                        Tel: 020 7496 3000

 

SEC Newgate (Financial PR)

Bob Huxford / Molly Gretton / Harry
Handyside                                Tel:
020 3757 6880

Email: microlise@secnewgate.co.uk (mailto:microlise@secnewgate.co.uk)

 

About Microlise

Microlise Group Plc is a leading provider of transport management software to
fleet operators helping them to improve efficiency, safety, and reduce
emissions. These improvements are delivered through reduced fuel use, reduced
mileage travelled, improved driver performance, fewer accidents, elimination
of paperwork and delivery of an enhanced customer experience.

 

Established in 1982, Microlise is an award-winning business with over 400
enterprise clients. With 463 employees based at the Group's headquarters in
Nottingham in the UK, the Company also has offices in France, Australia, and
India, with a total global staff base of over 670.

Microlise is listed on the AIM market of the London Stock Exchange (AIM: SAAS)
and qualifies for the London Stock Exchange's Green Economy Mark.

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