Eroad announced that it has closed the deal to acquire 100% of Coretex Limited following New Zealand Commerce Commission’s decision to grant clearance for the acquisition on Nov. 17th, according to the company's press announcement.
Under the terms of the acquisition, a payment of NZ$157.7 million (US$ 107.2m3) in upfront consideration has now been finalized, with a remaining NZ$30.6 million (US$20.8m2) in contingent consideration (payable in FY23 subject to Coretex achieving certain performance milestones).
Coretex is a provider of vertically specialized enterprise-grade telematics solutions in North America, Australia, and New Zealand. It will advance Eroad’s position as a global vehicle telematics provider onto a faster trajectory to reach its goal of 250,000 global units.
“We have consistently stated that acquisitions would be part of our global growth strategy. To accelerate growth, any acquisition target needed to deliver increased capability, improved customer experiences and access to additional market verticals,” said Steven Newman, CEO of Eroad. “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.”
In the North American market, Eroad has strengthened its position as a supplier of in-vehicle management solutions and trailer telematics. Coretex's portfolio of products, solutions, and services will help the growth in vertical markets including construction, mixed fleets, as well as waste and recycling.
“Coretex excels in thinking through the needs of the customer within the frame of the supply chain by taking an end-to-end vertical industry approach,” said Casey Ellis, President of Eroad North America. “Balance this against integration of their next generation hardware into Eroad’s broad regulatory product suite and it creates an advanced market fit. We’re also identifying a new set of short- and long-term strategic goals with an immediate upside for faster growth, particularly in the North American market.”
The combined entity is undertaking strategic planning to build on the rationale identified in the business case for the acquisition, with an aim to complete the integration within the next 12-18 months.