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- Orcoda (ODA) enters a share purchase agreement to acquire Future Fleet for a total purchase price of $1.39 million plus stock
- Brisbane-based Future Fleet is considered a world-leading provider and innovator of advanced fleet management systems
- In FY22, Future Fleet achieved revenue of roughly $3.5 million and EBITDA of around $500,000
- The settlement of this acquisition is expected to take place in July 2023, once due diligence is complete
- Shares in ODA are up 3.64 per cent and trading at 28.5 cents at 11:20 am AEST
Orcoda (ODA) has entered a share purchase agreement to acquire Brisbane-based Future Fleet for a total of $1.39 million, plus stock.
Established in 2003, Future Fleet is considered a world-leading provider and innovator of advanced fleet management systems, including telematics, asset tracking, AI-powered driver fatigue and distraction detection technology, and cold chain logistics assurance services.
The company manages more than 6400 vehicles across the transport, mining, services, government, farming and private sectors in Australia.
In FY222, Future Fleet achieved revenue of roughly $3.5 million and EBITDA of around $500,000, subject to due diligence and adjustments.
“Future Fleet is a perfect fit into our Healthcare & Transport Logistics division as we integrate and combine our proprietary apps and Orcoda Logistics Management System (OLMS) with Future Fleet’s telematics devices to provide optimisation and real-time management capabilities to its customers,” ODA Managing Director Geoff Jamieson said.
“I expect significant cross-selling opportunities as we serve similar market segments and our combined hardware and software offerings will be welcome by our targets customers as they seek to accelerate their digital transformation journey”.
The acquisition includes a $600,000 cash payment, plus stock at value (SAV) in cash at settlement.
Additionally, $500,000 will be paid in Orcoda shares at 25 cents apiece, as well as $290,000 in earn-out in two instalments over 12 months from the settlement date.
Orcoda reported it intends to fund the cash components of the purchase through existing cash reserves.
The settlement of this acquisition is expected to take place in July 2023, once due diligence has been completed.
Shares in ODA were up 3.64 per cent and trading at 28.5 cents at 11:20 am AEST.
