Microlise acquires K-Safe assets for £0.14m

9th Jan 2024 14:21

(Sharecast News) - Fleet software specialist Microlise announced the acquisition of the assets of K-Safe - the parent company behind road safety products Flare and Flare Aware - on Tuesday.

The AIM-traded firm said the acquisition included all assets and intellectual property owned by K-Safe, including the Flare and Flare Aware products, for a total of £0.14m.

Flare, which has a user base of over 3.5 million, was described by Microlise as a critical tool for brands including Deliveroo and Just Eat, as well as users of two-wheeled vehicles like cyclists, motorcyclists, and e-scooter riders.

The mobile application offers users features such as incident detection, incident avoidance, emergency alerts and hazard notifications to enhance safety while travelling on public roads.

Flare Aware was meanwhile described as a dynamic driver hazard warning system, collaboratively developed with Microlise.

It leverages data from the Flare mobile app user network to provide drivers with awareness and alerts regarding fixed hazards like low bridges and weight restrictions, as well as dynamic hazards like cyclists and motorcyclists.

This board said the acquisition would see Microlise exclusively offering Flare Aware, as the dynamic hazard warnings are made possible through the Flare user network.

The integration of the dynamic hazard solution, alongside Microlise's existing hazard warning product offerings, would create a distinctive safety product for logistics operators.

Several Microlise customers had already initiated successful trials of the product in their operations, with plans to implement it further.

As part of the acquisition, Microlise said it had added K-Safe's two staff members to its organisation, with all customer contracts also transferred.

The directors said the acquisition aligned with its strategic vision, and followed a pre-packaged deal initiated after the appointment of Begbies Traynor.

"We are excited to have acquired the assets of K-Safe, giving us exclusive access to the Flare and Flare Aware products," said chief executive officer Nadeem Raza.

"The Flare product also expands our market offerings to the fast-growing last mile solution space, and the two-wheel vehicle space globally."

At 1048 GMT, shares in Microlise Group were up 0.83% at 103.85p.

Reporting by Josh White for Sharecast.com.