- Orcoda (ODA) wraps up its acquisition of Future Fleet International, announced on June 2
- The company handed over two million shares for FFI and will in aggregate pay close to $1.4 million once all conditions are met
- Orcoda expects the acquisition to boost EPS metrics for FY24 over FY23
- The move also gives Orcoda access to more than 6000 vehicles for its software to manage
- Orcoda shares last traded at 33.5 cents
Orcoda (ODA) has wound up its acquisition of the privately held company Future Fleet International (FFI), giving the company access to a fleet of more than 6300 vehicles.
The move will also allow Orcoda to prove and grow the value of its in-house software.
The company expects the acquisition of FFI to boost Orcoda’s earnings per share (EPS) metric for FY24.
The acquisition process first began back in early June and took just short of two months.
Orcoda paid $1.148 million for FFI, comprising $600,000 plus roughly $258,000 of stock “at value”, paid in cash from the company’s coffers.
Additionally, $290,000 will be paid out in two instalments over 12 months after completion, with $145,000 payable after six months if FFI EBITDA is at least $100,000 in that six-month window.
A second instalment of $145,000 will be payable after twelve months, assuming FFI clocks an EBITDA of $150,000 in the second six months.
Orcoda also offered parties tied to the vendors two million ordinary ODA shares.
“My key focus is to engage with existing and prospective customers to cross-sell our products, as well as to drive product integration combining Future Fleet’s tracking solutions with Orcoda’s transport optimisation software,” FFI Founder Michael Worthington said.
Orcoda Managing Director Geoff Jamieson echoed his partner’s sentiments.
“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,” he said.
Orcoda shares last traded at 33.5 cents.