Future Fleet is Australia’s leading GPS fleet management solution provider
Highlights
- ORCODA Limited has entered into a share purchase agreement to purchase 100% of the shares in Future Fleet International Pty Ltd.
- Future Fleet, established in 2003 and based in Brisbane, is a world-class provider and innovator of advanced fleet management systems. The company, which has their devices and services in over 6,400 vehicles nationwide, boasts a ~A$3.5 revenue in FY22 and will substantially increase ORCODA’s recurring revenue.
- The total purchase price for the acquisition is A$1.39m plus stock at value, which includes a A$600k cash element, A$500k share issue of ODA ordinary shares, and a A$290k earn out clause tied to Future Fleet’s EBIDTA.
- Substantial sales opportunity in the 3G migration project and cross-selling with ORCODA and The Betta Group for existing and new customers
- ORCODA intends to fund the cash components of the purchase from its existing cash reserves without new equity or debt financings.
- The acquisition arrives as ORCODA signs a 3-year monthly license agreement with global logistics giant Northline – a contract valued at A$900k.
Orcoda’s Managing Director, Geoff Jamieson, commented:
“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. 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”.
