Software Circle has made another acquisition, with a £7.5m deal for Total Drive Software.
The listed Manchester group, previously known as Grafenia, describes itself as an “acquirer of vertical market software businesses” with Devon’s Total Drive the latest to join its portfolio.
Total Drive provides end-to-end software solutions for Driving Instructors.
The deal will be £7.5m in cash, with £3.5m paid on completion, a further £1m to be paid on the first anniversary and up to £3m based on achieving targets.
“We are thrilled to welcome Total Drive to Software Circle. Another great addition to our portfolio of vertical market software businesses,” said Gavin Cockerill, CEO.
“Total Drive has built a market-leading product with a strong customer base, and we see significant potential to further accelerate its growth by leveraging our expertise in operational scalability, technology, and customer engagement. We look forward to working with Ross, Tom and the team to enhance Total Drive’s market position.”
READ MORE – Grafenia looks to raise £28m to fund ambitious growth plans
Established in 2020, Total Drive has created software solutions and a mobile app for driving instructors. Currently the number one app for the sector, it’s used by around 6000 people.
Around 80% of its revenues come from annual recurring subscription fees with the remainder from payment processing and training aids and materials.
The unaudited financial statements for Total Drive for the year ended 30 September 2024 reported revenue of £0.8m, EBIT of £0.4m and closing net assets of £0.02m.
“Tom and I were highly impressed with Software Circle’s operating model. We believe the quality of their systems and processes will play a crucial role in supporting our rapid growth, enhancing our award-winning software, and elevating our customer service,” added CEO and founder, Ross Kernick.
Kernick will provide consultancy for two years post completion with Tom Wotton (CTO) leading the business on a day-to-day basis.
