Microlise Group PLC Acquisition of Enterprise Software Systems (ESS) (1391V)
30 November 2023 - 6:00PM
UK Regulatory
TIDMSAAS
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 GBP5.1m and an adjusted EBITDA of GBP1m during the 12
months to 31 August 2023, with net assets of GBP2.6m. 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 GBP7.65m cash payment due on completion and a maximum
deferred contingent consideration of GBP0.85m, payable in cash
after 6 months from completion and dependent on any claims. The
vendors will also receive a further GBP3m 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
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQZZMZMZLNGFZZ
(END) Dow Jones Newswires
November 30, 2023 02:00 ET (07:00 GMT)
Microlise (LSE:SAAS)
Historical Stock Chart
From Apr 2024 to May 2024
Microlise (LSE:SAAS)
Historical Stock Chart
From May 2023 to May 2024