Functions as a peptidoglycan terminase that cleaves nascent peptidoglycan strands endolytically to terminate their elongation (By similarity). Involved in peripheral peptidoglycan (PG) synthesis (PubMed:26933838). Localizes separately from FtsZ with the peripheral PG synthesis machine. The cytoplasmic N-terminal region is not required for endolytic transglycosylase activity under normal culture conditions. Deletion or inactivation severely impairs growth in encapsulated and unencapsulated strains and leads to the formation of spherical shaped cells. Peptidoglycan cleavage activity could not be detected in vitro under a variety of assay conditions, but a gene deletion can be complemented with E.coli mltG, leading to the conclusion that this gene is the functional homolog of the E.coli endolytic transglycosylase. Belongs to the transglycosylase MltG family.