Deal boosts BSM's commercial fleet management solutions with planning, scheduling, route optimization and fleet analytics
TORONTO—BSM Technologies Inc., a provider of remote monitoring, fleet management and fleet diagnostics, has acquired of substantially all of the assets of Mobi Corp., for initial cash consideration of US$8.0 million before working capital adjustments plus potential earn-out payments up to US$17 million.
Mobi’s appointment scheduling, route optimization and analytics software solutions are expected to provide a strong complement to BSM’s current product suite, the company said.
Mobi is a privately-held software provider with a core product offering of several modules utilizing GPS data and analytics for managing operational activities like planning, scheduling, routing and dispatch. For example, mobi.Route uses Mobi’s proprietary technology to reduce mileage and increase on time arrival allowing users to balance operational costs and customer satisfaction.
“Through our acquisition of Mobi, we are able to move beyond collecting and reporting data toward providing our customers with solutions to optimize their daily operations,” said Aly Rahemtulla, BSM’s president and CEO. “In addition, the acquisition will add predominantly SaaS recurring revenue and will drive EBITDA margin expansion.”
In order to allow for additional financial flexibility, BSM also has restructured its debt facility, replacing its current $6.0 million term facility with a committed C$20.0 million five-year revolving credit facility.