Trakm8 to acquire BOX Telematics for £3.5m
The Dorset-based company said the acquisition is in line with its strategy of augmenting its organic growth with selective acquisitions.
Following admission the company will also procure the repayment by BOX of a director’s loan of £750,000.
The acquisition will be funded from the company’s cash reserves, a newly signed debt facility of £2.5 million and subscription by the directors for new ordinary shares at a price of 22p to raise £720,000.
To provide additional working capital the company has undertaken a placing and subscription for new Ordinary Shares at the Issue Price to raise £1.35m.
As it’s classed as a reverse takeover, the acquisition is subject to shareholder approval.
John Watkins, CEO of Trakm8, commented: ‘The acquisition of BOX is a significant milestone for Trakm8, bringing strong financial and strategic benefits as it will enable us to exploit the growing demand for vehicle telematics in a fragmented market place.
‘We have been delighted by the positive reaction to acquire this profitable and complementary business and furthermore are pleased to welcome a number of high-quality UK institutions to our share register.’
finnCap Limited is acting as nominatedadviser and sole broker to the company.
Natalie Middleton
Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.
