Sorted Holdings joins Location Sciences in reverse takeover deal
Manchester-based software business, Sorted Holdings, has agreed a deal to be acquired by Location Sciences Group (LSG), by means of a reverse takeover.
Cheltenham-based LSG, which numbers boohoo co-founder Mahmud Kamani and former Zeus boss, Richard Hughes, among its major shareholders, returned to AIM this morning following a temporary suspension in trading.
LSG said the deal, worth just £66.73, represents a significant opportunity for it to implement its strategy to maximise shareholder value in the short-to-medium term through leveraging Sorted’s leading edge technology as well as the significant capital investment made in Sorted to date, being in excess of £70m.
It said Sorted has an attractive SaaS business model operating in the ecommerce sector with scalable predictable revenue performance.
It has a diverse customer base of household retail brands and strong industry partnerships. Its global ecommerce market is forecast to grow significantly in a highly fragmented market.
Sorted currently has around 60 staff.
LSG said it will raise approximately £2m in equity to provide working capital for growth.
LSG said, should the deal go through, it intends to change its name to Sorted Group Holdings to reflect the ongoing business of the enlarged group.
Location Sciences has historically been a location verification services provider to the digital advertising industry, working in partnership with advertisers, media agencies and suppliers to reduce advertising wastage and improve the effectiveness of location-based advertising campaigns.
In relation to this, the company developed products to tackle global location advertising fraud and location data inaccuracy.
Simon Wilkinson, chairman of Location Sciences, said: “The proposed acquisition of Sorted is a significant step for Location Sciences and, whilst this is taking time due to the nature of the processes designed to protect all shareholders, we are delighted with the progress we have made thus far and that our advisers are continuing to work hard on the transaction to bring it to fruition.”
Carmen Carey, CEO of Sorted, said: “Alongside pushing forward with the transaction, I am pleased with the important progress we have made at Sorted, including streamlining operations, expanding the customer base and increasing shipment volumes with our existing customers. This all bodes well for the future of Sorted.”
Eversheds Sutherland acted for Location Sciences Group with a team led by Daniel Hall.
Addleshaw Goddard also advised Sorted on the transaction, with a team led by Duncan Wilson and Nelema Akhtar.
