The group, which owns graphics industry platform Nettl Systems, has bought Total Drive Software. It provides software tools used by driving instructors with more than 6,500 using its system.

Users pay from £16 per month, and Total Drive Software lays claim to being the UK’s number one driving instructor app.

The initial amount paid was £3.5m, with a deferred consideration of £1m to be paid on the anniversary of completion.

If Total Drive Software meets certain future financial targets, then as much as a further £3m could be paid as an earn-out.

Unaudited accounts for Total Drive Software for the year to 30 September 2024 showed revenue of £800k and EBIT of £400k.

“With current run-rate revenues of approximately £1.1m, after adjustments our valuation is based upon expected EBIT of approximately £0.7m,” Grafenia stated.

The buy takes the group's number of vertical software businesses up to nine.

Software Circle will release its year-end results during July.