REG - Microlise Group PLC - Acquisition of Vita Software

MicroliseAnnouncement

14/03/2023 07:00

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RNS Number : 8167S  Microlise Group PLC  14 March 2023

14 March 2023

 

Microlise Group plc

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

 

Acquisition of Vita Software

£2.06M Strategic Acquisition Expands Microlise's Product Offering

 

 

Microlise Group plc (AIM: SAAS), a leading provider of SaaS based transport
technology solutions to fleet operators, is pleased to announce the
acquisition of Vita Software, a leading provider of transportation management
system ("TMS") solutions, for a total consideration of £2.06 million. The
acquisition will expand Microlise's suite of transport technology solutions
and is expected to immediately enhance earnings.

 

Established 2012 in the UK, Vita Software is a SaaS based TMS (Transportation
Management System) who are highly regarded and profitable, adding recurring
revenue to the Microlise Group. They provide a range of order management
products to fleet logistics operators, which includes resource and transport
costing, subcontractor management and invoicing solutions.  Business and
product integration will begin immediately, and all existing staff being
retained.

 

Microlise's existing solutions manage the safe, compliant, and efficient
execution of the transport movements through its range of subscription
services, offering the tracking and execution of generated orders. Vita
Software's TMS capabilities provides upsell and cross-sell opportunities,
embedding Microlise even further into its existing customers' operations. The
software only system is applicable to fleets of all sizes, supporting the
Group's strategy to expand its value proposition further into medium sized
fleets, with an enriched product offering.

 

The Company will pay an initial consideration of £1.86 million cash payment
for Vita Software, on a cash free, debt free basis, with the initial
consideration funded from the Company's existing cash reserves. In addition,
the Company will pay a deferred consideration of £0.2 million after 12 months
subject to any claims.

 

Vita Software generated Adjusted EBITDA of £0.25 million in the year ended 30
September 2022.

 

Commenting on the acquisition, 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."

 

For further information, please contact:

 

 Microlise Group plc                                      C/O SEC Newgate
 Nadeem Raza, CEO
 Bill Wynn, CFO

 Singer Capital Markets (Nominated Adviser & Broker)
 Steve Pearce / James Moat / Harry Gooden                 Tel: 020 7496 3000

 SEC Newgate (Financial PR)                               Tel: 020 3757 6880
 Bob Huxford / Molly Gretton / Harry Handyside            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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