Vehicle tracking and fleet management company DigiCore has bought a quarter share of UK-based MPS 2010, for an undisclosed amount.
Loss-making Minorplanet Systems recently created MPS. The new subsidiary now owns all of Minorplanet's UK business, some of its UK assets, including the customer base, and all of its intellectual property.
Minorplanet, which provides fleet management systems and services in the UK, is listed on the London Stock Exchange's junior bourse, AIM.
DigiCore CEO Nick Vlok, who is in the UK to wrap up the deal, says the investment will give the company access to a wider customer base and new intellectual property. He explains that Minorplanet made a loss during its last financial year, but he is hopeful this situation can be turned around now that the MPS structure has been put into place.
“Minorplanet is a long-established business within the telematics sector, with considerable experience and expertise. We trust this is the start of a relationship that we can develop further for our mutual commercial benefit by taking advantage of growing demand for tracking solutions in the UK and mainland Europe,” Vlok adds.
The JSE-listed company has bought the stake through its Netherlands-based offshore holding division, DigiCore International Holdings. It has advanced the company a shareholder's loan of £3 million, which may be converted to equity at a later stage, giving it a controlling stake in Minorplanet.
Good for growth
“Together, both companies have the potential to create a significantly larger telematics platform across Europe and be well positioned to take advantage of the opportunities that this is likely to bring,” the company says.
Minorplanet CEO Terry Donovan says the deal is a “positive development for the group given the economic backdrop. We appreciate Digicore's assistance and recognition of the inherent value of Minorplanet's major subsidiary, the value of the customer base and its experience in providing telemetry solutions”.
DigiCore has 35 international markets, including the UK and Europe. In the UK, it has secured fleet management deals with companies such as Yorkshire Water and Severn Trent Water, Thames Water, Southern Water, Wessex Water and Wales & West Utilities.
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