‘Serial acquirer’ in driving seat after £7m deal for software specialist

Software Circle has put itself in the driving seat after acquiring a specialist software company in a deal worth up to £7.5m.

The AIM-listed business has bought Torquay-based Total Drive Software, which provides an end-to-end software solution to 6,000 individual driving instructors

Software Circle, which used to be called Grafenia, is a “serial acquirer” of vertical market software businesses.

Gavin Cockerill, chief executive of the Manchester-based group, said it was “another great addition” to its growing portfolio.

“Total Drive has built a market-leading product with a strong customer base, and we see significant potential to further accelerate its growth by leveraging our expertise in operational scalability, technology, and customer engagement,” he said.

The initial cash payment of £3.5m, with a further £1.0m due in a year. Up to £3.0m is payable based on 2026 performance.

Total Drive has current run-rate revenues of approximately £1.1m, and the deal valuation has been based upon expected earnings of approximately £0.7m. 80% of its revenues come from annual recurring subscription fees with the remainder from payment processing and training aids and materials.

Ross Kernick, founder of Total Drive

Founder and chief executive Ross Kernick will provide consultancy for two years post completion with chief technology officer Tom Wotton leading the business on a day-to-day basis.

Kernick said: “Tom and I were highly impressed with Software Circle’s operating model. We believe the quality of their systems and processes will play a crucial role in supporting our rapid growth, enhancing our award-winning software, and elevating our customer service.”

Sara Thomasson, Knightsbridge Associate Director, who advised on the deal, said: “The business attracted significant interest from quality buyers, and the buyers’ experience in acquisitions facilitated a smooth and efficient deal completion. Overall, it was a highly successful and rewarding transaction for all parties involved.”