Australian technology company GetSwift is set to acquire two US-based companies for a total of US$4.5 million in cash.
The software-as-a-service (SaaS) logistics firm is to buy Colorado-based delivery management platform Delivery Biz Pro (DBP), alongside workforce scheduling provider, Scheduling+.
In an announcement to shareholders, publicly-listed GetSwift said ‘key employees’ and the companies’ founders will be integrated into their existing team and be ‘incentivised’ to stay at least two years.
“We are excited to expand the size of GetSwift’s product offerings, and add technical, product, sales and marketing expertise, with acquisitions that we believe will create long-term shareholder value,” GetSwift CEO Bane Hunter said.
Founded in 1998, DBP provides a subscription-based cloud service for businesses with recurring product orders particularly within the meal kit, dairy, home and commercial delivery sectors.
It claims to have also provided solutions for Comcast, Western Union and Dell over the last 20 years.
Scheduling+ meanwhile is the flagship product of Web Software LLC, which combines staff scheduling, task management, attendance and payroll into one subscription-based cloud solution.
According to Hunter, the acquisition will mean that GetSwift is no longer required to partner with external providers for enterprise automation software, providing it as its own proprietary solution.
Under the terms of the transactions, the collective cost of the two companies’ assets will come to US$4.5 million in cash, plus assumption of liabilities, with a US$1 million payment structure for Scheduling+ over a 12-month period.
The acquisitions will be funded from GetSwift’s balance sheet, the announcement added.
The news comes amid GetSwift's ongoing legal battle between three individuals over allegations it breached its continuous disclosure obligations and engaged in misleading or deceptive conduct.
However, a judge recently ruled that only one of the three class actions should be brought to trial due to disagreements between the different applicants, funders and solicitors.