Software Circle has acquired driving instructor service provider Total Drive.

The diary management online provider claims to have over six thousand ADI subscribers.

Total Drive was valued at £7.5m.

Moving on

Software Circle plc has announced the acquisition of Total Drive Software Limited.

Total Drive has become established as a significant provider of software solutions for driving instructors.

It essentially provides an online diary management and payment recording system for driving schools.

Valued at up to £7.5 million, depending on ongoing performance, the sale marks a strategic move for Software Circle as it expands its portfolio of vertical market software businesses.

Money and meaning

The acquisition was sealed with an initial payment of £3.5 million, and an additional £1.0 million is scheduled for payment on the transaction’s first anniversary.

The rest of the sale price will be made up of up to £3.0 million in earn-out payments, but this is contingent upon Total Drive meeting specific financial performance targets for 2026, with adjustments based on earnings in 2025 and 2026.

This purchase is expected to add to and reinforce Software Circle’s commitment to strategic, high-value acquisitions.

Total Drive customers should not see any change to their current service.

Growing success

Since its inception in 2020, Total Drive has experienced substantial growth and is now regarded as one of the UK’s leading driving instructor software providers.

Its award-winning software and mobile app are used weekly by approximately 6,000 – 6,500 driving instructors.

Total Drive derives about 80% of its revenues from recurring annual subscription fees, with the remainder coming from payment processing and the sale of training aids and materials.

The company enjoys strong customer reviews, with a 4.5/5 rating on Trustpilot and a 5/5 rating on Capterra.

For the financial year ending September 30, 2024, Total Drive reported revenues of £0.8 million and  £0.4 million of earnings before tax (EBIT).

The company’s current revenue run rate stands at approximately £1.1 million, withan  expected EBIT of £0.7 million factored into the acquisition valuation.

In the driving seat

Following the acquisition, Total Drive founder Ross Kernick will remain involved as a consultant for the next two years.

Meanwhile, Chief Technology Officer Tom Wotton will take on a leadership role, managing day-to-day operations and overseeing the company’s growth initiatives under Software Circle’s ownership.

Software Circle CEO Gavin Cockerill expressed enthusiasm about the acquisition, stating:

“We are thrilled to welcome Total Drive to Software Circle. This is another fantastic addition to our portfolio, aligning with our strategy of acquiring high-quality, market-leading software businesses. Total Drive has built an exceptional product with a strong customer base, and we see significant potential to accelerate its growth through our expertise in operational scalability, technology, and customer engagement.”

Meanwhile, the founder of Total Drive, Ross Kernick, highlighted the benefits of the acquisition, saying:

“Tom and I were highly impressed with Software Circle’s operating model. Their systems and processes will be instrumental in supporting our continued expansion, enhancing our award-winning software, and elevating customer service. This partnership will further solidify Total Drive’s position as the UK’s #1 driving instructor software.”

Down the road

Software Circle remains committed to its strategy of identifying and acquiring complementary businesses to enhance its portfolio and drive sustainable growth.

It is financially set up to make further business acquisitions to add to its portfolio.

The acquisition of Total Drive is a prime example of the company’s approach to acquiring high-growth, subscription-based businesses.