Integrated smart technology company Orcoda Limited (ASX: ODA) has acquired Future Fleet International Pty Ltd.
Future Fleet is a provider and innovator of advanced fleet management systems with over 250 customers and currently services ~6,400 vehicles. The Acquisition is expected to be accretive to Orcoda earnings per share (EPS) for the financial year ending 30 June 2024, and substantially increases Orcoda’s recurring revenue stream.
Completion of the Acquisition follows the satisfaction or waiver of conditions precedent and other completion requirements. The total consideration for the Acquisition consists of:
1. Cash payment to the vendors of the sum of $1,148,227, comprising:
2. The issuance of two million fully paid Orcoda Limited shares to an entity associated with the vendors.
Michael Worthington, founder of Future Fleet, will continue to stay on as a consultant for a reasonable period to oversee a smooth transition. Rick Polzi, who has been with Future Fleet for almost 20 years, will be the Managing Director of Future Fleet.
“We are pleased to have completed the acquisition of Future Fleet, and we look forward to welcoming their employees and realising synergies between our organisations,” said Orcoda Managing Director Geoff Jamieson.
“The transaction is important to our overall Smart Cities strategy as Future Fleet’s products provide critical vehicle tracking and monitoring solutions and are highly complementary to our transport management and optimisation software platform. We expect the Acquisition to deliver significant long-term value to our key stakeholders.”