Microlise Group Plc has completed the acquisition of the entire issued share capital of Enterprise Software Systems (ESS).
The deal was announced at the end of November 2023 and now completes after the UK Competition and Markets Authority said it had no objections to the acquisition. The agreement was for a maximum consideration of £8.5m in cash, funded by the company’s cash reserves.
ESS was founded in 1997 and provides transportation management systems (TMS) to enterprise clients such as Culina Group and GXO, expanding Microlise’s work in this area.
For the 12 months to 31 August 2023, ESS generated revenues of approximately £5.1m and adjusted EBITDA of £1m, with approximately 75% of the revenue being recurring, based on long-term contracts.
Nadeem Raza, CEO of Microlise, commented: “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.”
The acquisition completed as Microlise also announced that it had acquired the assets of K-Safe, parent company to the road safety products Flare and Flare Aware, for a total consideration of £140,000.
Microlise also added Vita Software, a SaaS-based TMS specialist, to its portfolio in a deal struck in March 2023.
Nadeem Raza said the company’s long-term plan is to offer a comprehensive suite of solutions that cater to fleets of all sizes across its strategic geographies. This includes combining TMS technology with existing offerings, providing customers with an “accessible and enriched end-to-end solution that is designed to optimise operations, increase cost visibility and improve profitability”.
Microlise’s trading update for the year ended 31 December 2023 will go live on Tuesday 30 January 2024.
