CalAmp acquires UK’s Tracker and Mexico’s Car Track
Technology solutions specialist CalAmp has acquired Tracker in the UK and Car Track in Mexico to expand its global portfolio for connected vehicle and asset tracking solutions.
Tracker, which provides tracking and telematics services and is a licensee of CalAmp’s LoJack brand, has been acquired for approximately US$13m (£10m / €11.6m). The move will see the business strategically aligned with LoJack Italia, helping to drive CalAmp’s European expansion by developing connected car solutions targeting auto dealers, OEMs, insurance providers and other enterprise customers.
Tracker and LoJack Italia have similar models in terms of law enforcement relationships and strong brand awareness, and the acquisition will see them aligned to support key enterprise customer opportunities on a pan-European basis.
“We’re excited about the opportunity to increase our base of subscribers in the growing UK and European telematics market and broader European connected economy. We see joining the CalAmp team as a natural progression to facilitate that opportunity,” said Greig Hilton, managing director at Tracker.
CalAmp has also agreed to acquire Car Track, the exclusive licensee of LoJack technology for the Mexican market. The move will see Car Track draw on CalAmp’s telematics and software-as-a-service (SaaS) solutions to expand product offerings to its subscriber base as well as serve auto dealers and OEMs, insurance providers and leasing companies throughout Mexico. The agreement is to purchase the 87.5% of the Car Track shares not currently owned by CalAmp for a purchase price, net of cash on hand, of approximately US$13m (€11.4m).
“With car theft running at an all-time high in Mexico and only 40% of the vehicle population covered by insurance, the demand for LoJack’s services has never been greater,” said José Antonio Ocejo Gutiérrez, founder and CEO for Car Track. “We have built a profitable business and world-class brand with strong channels and customer relationships. With CalAmp’s expertise in telematics and advanced connected vehicle technology, Car Track’s prospects for growth are exciting and will strengthen its competitive position and extend the LoJack brand into the future.”
TheTracker acquisition has closed and the Car Track acquisition is expected to close in March. These acquisitions accelerate CalAmp’s international expansion and, in combination with LoJack Italia, are expected to contribute more than $10m a quarter in recurring revenue in the second half of fiscal 2020 and account for more than 400,000 subscribers across three countries.
“We see a significant opportunity for international expansion and global enterprise customer engagement for higher margin recurring revenue services through the LoJack Mexico and Tracker acquisitions,” said Justin Schmid, general manager of LoJack International Operations. “LoJack Mexico and Tracker are already recognised leaders in their respective regions for telematics and SVR services. The recognised brands and their channels are expected to extend CalAmp’s global reach for advanced connected car services for enterprise customers and consumers alike.”