Motio Group (ASX:MXO) acquires UK software firm Liquid Thinking

• Motio Group completes the acquisition of UK software firm Liquid Thinking (LT) which Motio currently represents in Australia and helped distribute LT’s Spawtz Software
• The acquisition is said to deepen Motio’s capability and utility into the indoor and team sports environment
• Under the acquisition agreement, Motio will pay $375,000 in cash and will issue around 3.75 million shares at an issue price of ten cents per share, escrowed for 12 months from date of completion
• With the acquisition, Motio believes that it will continue to expand the capabilities and broaden the footprint across key markets, especially in New Zealand
• MXO shares were down 1.41 per cent, trading at seven cents at market close

Motio Group (MXO) has acquired UK software firm Liquid Thinking (LT), which Motio currently represents in Australia and helped distribute LT’s Spawtz Software.

The acquisition is said to deepen Motio’s capability and utility into the indoor and team sports environment, as the Spawtz Software is used extensively across more than 900 venues and interacting with over 750,000 players in the Australian, New Zealand, the UK and South African markets.

With the acquisition, Motio believes that it will continue to expand its capabilities and broaden its footprint across key markets, especially in New Zealand.

COO Michael Johnstone reiterates that the acquisition “provides a fresh new set of opportunities” to grow in Australia and international markets.

Motio expects that in addition to increased revenue, the acquisition will provide the company with the opportunity to expand its offering and provide valuable business development strategy and expertise to grow the Spwartz platform to provide a true “court to court” audience experience.

The company will also work in conjunction with LT’s staff to enhance the integrated online payment platform in the Spwartz software to increase user experience and incremental payments revenue.

Under the acquisition agreement, Motio will pay $375,000 in cash, funded through the company’s existing cash reserves, and will issue around 3.75 million shares upon completion of the deal at an issue price of ten cents per share, escrowed for 12 months from date of completion.

A further $600,000 will be given in cash or shares at Motio’s option across three tranches.

Motio expects completion of the deal to occur around March 29.

LT’s Managing Director Matthew Davis will remain an employee with the business and will continue to lead the UK operations and product development.

Motio estimates that the acquisition revenue will contribute between $1-1.2 million within FY23 and is expected to be earnings before interest, taxes, depreciation and amortization (EBITDA) accretive in the same year.

MXO shares were down 1.41 per cent, trading at seven cents at market close.