DigiCore invests £3 million in Minorplanet subsidiary
DigiCore has invested £3 million in the newly formed subsidiary, which provides immediate financial stability for Minorplanet, which has faced significant financial problems that have reportedly severely limited its ability to sell and raise lease finance.
Earlier this month Minorplanet narrowly avoided a winding-up petition from HMRC for a £2 million claim after announcing it was close to finalising the sale of the company's UK operation.
The two firms say that the new subsidiary, MPS 2010, will 'combine the strengths of Minorplanet in the UK SME market with its customer service and software competence together with DigiCore’s commercial presence and established position in the corporate market. It will provide both companies with 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.'
Nick Vlok, chief executive of DigiCore Holdings Limited, commented: 'Minorplanet is a long established business within the telematics sector with considerable experience and expertise. We hope 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.'
DigiCore is a wholly owned subsidiary of DigiCore Holdings Limited, which is listed on the Johannesburg Stock Exchange and specialises in the research, design, development, manufacture, sales and support of GPS/GSM fleet management and vehicle tracking solutions.