[Stay on top of transportation news: Get TTNews in your inbox.]
New Zealand-based ERoad announced Dec. 1 that it has closed the acquisition of the telematics solutions provider Coretex Limited.
ERoad develops technology solutions to help commercial fleets stay in compliance, improve safety and reduce the risk and operational costs of driving. The company said the acquisition will enable accelerated growth in North America.
“We have consistently stated that acquisitions would be part of our global growth strategy,” ERoad CEO Steven Newman said. “In Coretex, we have found a highly complementary partner which allows us to satisfy these criteria, with the combined organization bringing the expertise and scale to deliver against market demand, faster.”
We're thrilled to announce that EROAD has completed its 100% acquisition of Coretex. The combined organisation will have the expertise and scale to deliver the products the market is demanding faster than each working alone. https://t.co/sfzW1HyHIr#coretex #eroad #telematics pic.twitter.com/upN4mSYzEj— EROAD (@EROADGlobal) November 30, 2021
ERoad said under the terms of the acquisition, effective Dec. 1, a payment of $107.2 million in upfront consideration has been finalized. Coretex will have to achieve certain performance milestones to gain a remaining $20.8 million in contingent consideration in fiscal year 2023.
Coretex is a provider of vertically specialized enterprise-grade telematics solutions in North America, Australia and New Zealand. ERoad said the acquisition will advance its position as a global vehicle telematics leader onto a faster trajectory to reach its goal of 250,000 global units.
The New Zealand Commerce Commission opened the door to the acquisition being finalized with its decision to grant clearance for the deal Nov. 17. — Transport Topics
Want more news? Listen to today's daily briefing below or go here for more info: