All conditions precedent to the acquisition of the Safe Drive International (SDI) group of companies have been fulfilled, says JSE-listed electronic fleet management company TeliMatrix.
"The acquisition was announced in July this year and is our first major acquisition since listing," says TeliMatrix CEO Stefan Joss.
TeliMatrix acquired all of the issued share capital in and the sellers' claims against SDI, a company incorporated in Australia, and SDI's 100%-owned subsidiary, Safe Drive FZE, incorporated in the Dubai Airport Free Zone of the Government of Dubai.
The deal included 49% of the issued share capital and shareholder claims against Driver Training International Middle East and Africa, a company incorporated in the United Arab Emirates.
SDI was acquired for an aggregate purchase consideration comprising cash of six million Australian dollars and 17 million ordinary shares in TeliMatrix (based on an agreed value of R1.70 per share). The consideration shares carry trading restrictions, ensuring the continuity of an ownership culture with the key SDI management.
SDI delivers land transport safety solutions. "The business delivers a holistic approach to driver safety into which TeliMatrix's products and services play an integral role," says Joss.
SDI has been a distributor of OmniBridge (now MiX Telematics, a TeliMatrix company) for the past eight years and has successfully employed the group's annuity-based business strategy.
Over the past year alone, SDI has added annuity contracts comprising more than 3 000 commercial vehicles. SDI has a primary focus on the oil and gas and mining sectors in the Middle East and Asian markets and also has a presence in Australia and Russia.
SDI's operational model and management team are in line with the TeliMatrix's vision to be a leading worldwide provider of information and related services for mobile assets. This acquisition expands the group's worldwide footprint, adds value to the group's intellectual capital pool and brings further value to the existing customer base, it says.
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