Transport technology provider Microlise has bought Vita Software for £2.06m as part of the company’s wider acquisition plans.

The company said this week the purchase of Vita Software is the first of a number of “targeted acquisitions” fuelled by funds raised by its IPO in 2021.

Microlise said the addition of Vita Software - a UK transport management system provider – to the group will expand Microlise’s suite of transport technology solutions, immediately enhance earnings and offer upselling and cross selling opportunities.

Vita Software, which was launched in 2012, provides a range of order management products to fleet logistics operators, which includes resource and transport costing, subcontractor management and invoicing solutions.

Microlise said business and product integration will begin immediately, with all existing staff being retained.

Microlise will pay an initial consideration of £1.86m 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.

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Vita Software generated adjusted EBITDA of £250,000 in the year ended 30 September 2022.

Commenting on the acquisition, chief executive 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.”