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The transportation safety technology company ERoad said it entered into a conditional agreement to acquire Coretex Limited.
Coretex is a provider of telematics solutions that is based out of Auckland, New Zealand.
ERoad develops technology solutions to help commercial fleets stay in compliance and improve safety and is also based out of Auckland.
We are pleased to announce that EROAD has agreed to acquire 100% of Coretex! The acquisition will accelerate EROAD’s key growth metrics by two years enabling faster growth in North America. Read More: https://t.co/OlAd47aunF #gpstracking #telematics #growth @coretexsolution pic.twitter.com/Uef1YVAzZK— EROAD (@EROADGlobal) July 15, 2021
Both companies also operate within the U.S.
“We have always stated that acquisition would be part of our growth strategy to reach our medium- and long-term goals,” ERoad CEO Steven Newman said July 14. “We have been clear we would seek complementary and proven technology to augment our product range. To accelerate growth, any acquisition target needed to deliver increased capability, improved customer experiences and access to additional market verticals. In Coretex we have found a highly complementary partner.”
ERoad said the acquisition will accelerate its key growth metrics by two years in North America and Australia. It will also position the combined business as a bigger player in the global telematics market.
We're over the moon to make this move with another Kiwi company with such similar values. It provides the resources to continue growing our tech on the global stage, and we can't wait to see what the future holds! https://t.co/yTsWDgWrJD— Coretex (@coretexsolution) July 16, 2021
“The combined organization will have the expertise and scale to deliver products the market is demanding faster than each working alone,” Coretex CEO Selwyn Pellett said. “Once we understood each other’s strengths, the fit was undeniable.”
The acquisition is subject to New Zealand Commerce Commission approval and New Zealand Overseas Investment Office consent. It is expected to be complete in the second half of fiscal 2022.
ERoad said the total offer consideration is U.S. $109.49 million (NZ$157.7 million) in upfront consideration and U.S. $21.24 million (NZ$30.6 million) in contingent consideration. — Transport Topics
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