This is an opportunity to acquire a developer of transportation logistics software and provider of customized tracking solutions for the industry. The company develops in-house Software to deliver enhanced safety and compliance solutions for truck and fleet management companies across North America. The business is FMCSA registered and ELD compliant. The business sources hardware units which are portable and can endure weather and impact.
Due to the regulatory barriers involved, its compliance with the U.S. Federal Motor Carrier Safety Administration and expected Transport Canada regulations assure the business a wide economic moat and opportunity to scale-up operations and generate strong growth going forward. The company generates recurring revenue through a subscription based model and has a loyal customer base. In addition, the business has a strong financial track record with an average four year normalized EBITDA margin of 40%.
The transportation and logistics industry has experienced a surge in demand due to growth in e-commerce and same day delivery. In addition, regulatory tailwinds, mandating ELD systems in the trucking and fleet management industry are expected to fuel growth for the industry over the next decade.
The opportunity is ideal for a related enterprise software developer that wants to expand into the transportation and logistics industry or a fleet management company looking to acquire a proprietary navigation and safety management system.
Normalized EBITDA: $884,000
Normalized SDE: $964,000