Global Geoscience has announced that it has executed a binding term sheet to acquire rapidly growing global logistics management software platform, GetSwift.
The term sheet has been executed with the major shareholders of Distributed Logistics Group (“Distributed Logistics”), operator of GetSwift.
The acquisition is subject to due diligence and is to be completed through the exercise of an option to acquire all of the issued capital of Distributed Logistics Group.
GetSwift was developed in 2013 and used to run Liquorun.com in Australia. The software was then optimised as a standalone platform, rebranded as GetSwift, and assigned to Distributed Logistics Group for commercialisation.
GetSwift is a sophisticated logistics management software platform that provides businesses of all sizes with a seamless and affordable way to optimise dispatching, routes, and track last mile deliveries and logistics tasks. Distributed Logistics was incorporated in 2015.
Provided as a business-to-business SaaS solution, GetSwift provides automated delivery functionality in a white labeled, highly scalable solution.
Off the shelf modules enable seamless integration with existing order purchase and dispatching systems. The business model uses a tiered fee structure based on volume, charged as a per delivery transaction fee, no fixed overhead or upfront charges encourage client adoption.
Client brand equity is preserved as the GetSwift platform operates in the background so customer relationships are not impacted and GetSwift enables the customer to see their delivery status in real time. Greatly reducing customer uncertainty about where and when their delivery will take place, reducing costs associated with managing customer expectations.
- Under the binding term sheet, the majority shareholders in Distributed Logistics have granted GSC an exclusive 45-day option to conduct due diligence to its satisfaction and then elect to acquire their shares in Distributed Logistics;
- Advance of a $750,000 loan to Distributed Logistics. The loan is to be advanced by a syndicate of investors compiled by Cygnet Capital and is to be repaid, at completion, through the issue of fully paid GSC shares at a share price equal to a 20% discount to the prospectus capital raising;
- The Key Executives of Distributed Logistics entering into 48 month executive services agreements with GSC.
Following completion of the acquisition, Distributed Logistics will be attempting to increase its revenue significantly as it continues to commercialise its software with GSC’s available cash and funds raised from the Capital Raising to be deployed to finalise the development and assist in commercialising the GetSwift software. Accordingly, it is expected that the operating losses will continue for the consolidated group in the near term post completion of the acquisition.