Microlise set to drive growth with £11.5m acquisition
Microlise Group, the Nottingham provider of SaaS based transport technology products to fleet operators, is set to buy Enterprise Software Systems (ESS), a provider of transportation management system (TMS) solutions.
Founded in 1997 in the UK, ESS is a 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 posted 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.
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 six 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.
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.”