Control Instruments reacquires FMS for R5.25m
JSE-listed Control Instruments has acquired the business of FMS from Matrix Vehicle Tracking for R5.25 million in cash.
The group says FMS has the distribution rights for the Fleet Management (FM) range of onboard computers used to manage and control commercial vehicles and commercial vehicle fleets.
The product range is designed, developed and manufactured by Control Instruments subsidiary CI-FMS, which is based in Stellenbosch.
"The FM range of products is sold and distributed worldwide by SiemensVDO, under the SiemensVDO brand name, through the same distribution channels as the entire range of SiemensVDO aftermarket automotive electronic and instrumentation products," a Control Instruments spokesman says.
"CI-VDO, a subsidiary of the group, is the exclusive distributor of SiemensVDO aftermarket products in sub-Saharan Africa and the Indian Ocean Islands.
"CI-VDO also distributes the FM range of products in these countries, with the exception of Southern Africa where the FM range has to date been distributed by Matrix. Matrix acquired these rights from the group at a time when the group was still a major shareholder in it."
The spokesman says the reacquisition of the business was made to bring CI-VDO`s business model in line with SiemensVDO`s worldwide distribution structure and to rationalise its interests.
The cash for the acquisition is to be paid in full on 1 October.
Control Instruments says the deal does not affect its net asset value or earnings per share.
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