Manchester-based delivery tech firm, Sorted Holdings, is set to be acquired by Location Sciences Group (LSG) in an eye-catching £66.73 reverse takeover – there’s no typo or missing ‘m,’ that said just £66.73.
Cheltenham-based LSG, which counts Boohoo co-founder Mahmud Kamani among its key shareholders, returned to AIM this morning following a temporary suspension in trading.
Sorted, launched in 2010 by David Grimes, had run into financial difficulties despite raising around $100m in investment over the years.
LSG said the deal represents a “significant opportunity” for it to maximise shareholder value in the short-to-medium term through leveraging Sorted’s leading edge technology, and revenues, in the ecommerce delivery sphere as well as the significant capital investment already made in the company.
Sorted has a diverse customer base of retail brands and industry partnerships. It employs around 60 staff and its global ecommerce market share is forecast to grow significantly in a highly fragmented market.
LSG said it will take on the global software firm’s debts of £4m plus interest and invest up to £3m of capital as part of the deal.
Should the deal go through, it intends to change its name to Sorted Group Holdings to reflect the ongoing business of the enlarged group.
Location Sciences has historically been a provider of location verification services to the digital advertising industry, working in partnership with advertisers, media agencies and suppliers to reduce advertising wastage and improve the effectiveness of location-based advertising campaigns.
Simon Wilkinson, chairman of Location Sciences, said: “The proposed acquisition of Sorted is a significant step for Location Sciences and, whilst this is taking time due to the nature of the processes designed to protect all shareholders, we are delighted with the progress we have made thus far and that our advisers are continuing to work hard on the transaction to bring it to fruition.”
Carmen Carey, CEO of Sorted, said: “Alongside pushing forward with the transaction, I am pleased with the important progress we have made at Sorted, including streamlining operations, expanding the customer base and increasing shipment volumes with our existing customers. This all bodes well for the future of Sorted.”
