Software Circle acquires Total Drive in £7.5m deal

(Sharecast News) - Software business Software Circle has acquired end-to-end software solutions for driving instructors provider Total Drive Software in a deal worth up to £7.5m. Software Circle said on Friday that the acquisition, which will be satisfied in cash and was structured on a debt free/cash free basis, was expected to be cash flow generative and earnings-enhancing in the first year post-acquisition.

The AIM-listed firm stated initial consideration paid at completion was £3.5m, with a deferred consideration of £1.0m to be paid on the first anniversary of completion. Up to a further £3.0m was payable contingent upon the achievement of certain financial targets.

Chief executive Gavin Cockerill said: "We are thrilled to welcome Total Drive to Software Circle. Another great addition to our portfolio of vertical market software businesses. 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. We look forward to working with Ross, Tom and the team to enhance Total Drive's market position."

As of 0855 GMT, Software Circle shares were up 1.67% at 30.50p.











Reporting by Iain Gilbert at Sharecast.com