Manchester-based delivery tech firm Sorted has been acquired in a reverse takeover by AIM-listed company Location Sciences for less than £70 after raising more than £70m over the years.
Founded in 2010, Sorted develops software to analyse the performance of deliveries to improve operational efficiency. Sorted has worked with major ecommerce partners, including Asda, Lush and ASOS.
Sorted agreed on Tuesday to be acquired by Location Sciences, a publicly listed advertising technology firm. According to an update, published on the London Stock Exchange, the acquisition was for a nominal fee of just £66.73.
Estimates from Dealroom from 2021 suggested the value of Sorted to be as high as $240m (£189.4m). The valuation followed a £35.3m Series C funding round. Around the same time, Sorted had also acquired automated returns startup Clicksit.
The deal was described as a “significant opportunity for Location Sciences” to leverage Sorted’s “leading edge technology” and “significant capital investment”. To date, Sorted has raised approximately $100m, or £79m at today’s exchange rate.
In 2022 Sorted secured a £3m loan investment, but the additional capital did not prevent it from running into financial difficulties.
Sorted has more than 60 employees, which are expected to join the Location Sciences team.
As part of the deal, Location Sciences has agreed to assume the entirety of Sorted’s outstanding debt of approximately £4.7m. The deal was first proposed in June last year.