Electronic fleet management group TeliMatrix has acquired 100% of the Safe Drive International group (SDI). SDI specialises in the delivery of land transport safety solutions.
The acquisition is with effect from 1 July and the aggregate purchase consideration comprises the cash amount of six million Australian dollars and 17 million ordinary shares in Telimatrix, based on an agreed value of R1.70 per share.
The company says this amounts to between R70 million and R75 million, depending on the exchange rate when the deal goes through. Essentially, SDI represents a "customer acquisition" for the company, says TeliMatrix CEO Stefan Joss. SDI was a reseller of TeliMatrix, primarily in the Middle East and Australia.
"We own our own distribution in SA, the UK and the US, now we own the Middle East and Australia as well," says Joss. He says the ideal situation for the company, if the critical mass is right, is to go direct to market.
The acquisition is still subject to approval by the South African Reserve Bank, however, Joss is confident the deal will go through.
SDI deals primarily in the oil and gas industries, an area which Telimatrix is hoping to exploit through the acquisition. "The customers gained in the Middle East and in Australia all have parent companies in the US, we are hoping to move through the subsidiaries to access business in that space.
"The consideration shares carry trading restrictions, ensuring the continuity of an ownership culture with the key SDI management," adds Joss.
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