Acquisition of Vita Software

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."

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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.