Combined firm to strengthen offering here and in North America
Transport IT firm ERoad has bolstered its regional ambitions with the agreed acquisition of New Zealand telematics firm Coretex.
The fleet management and safety software provider expects to spend NZ$157.7 million (A$148.3 million) upfront and NZ$30.6 million in contingent consideration, the latter payable in next financial year subject to Coretex achieving certain performance milestones.
The purchase is part of an expansion drive ERoad, a TruckSafe development partner, expected will see it expand faster locally and in North America.
“Combining ERoad’s leadership position and expertise in broadly adopted regulatory telematics solutions with Coretex’s extensive vertical market expertise, products, and customer base, is a great fit,” ERoad CEO Steven Newman said.
“Coretex excels in thinking through the needs of the customers within the frame of the supply chain. Whether it is temperature control, service verification, contamination detection, location or fuel performance, Coretex takes an end-end approach by industry vertical.”
Read how Coretex was the result of an NZ merger, here
The joining of Eroad and Coretex is something of an NZ affair, with both being there and both looking for global expansion.
“Together we will have a wider set of talent and solutions that will deliver benefits to our customers quicker instead of working in silo of each other,” Coretex CEO Selwyn Pellett said.
“Our products and services complement one another, to provide the best solution for existing and prospective customers, it made sense to unite them.”
The move comes as Coretex is expected to deliver an Australian Electronic Work Diary (EWD) within the next six months.
The firms say they are complementary at all levels, with the fit being that Coretex focuses on creating customer value within cold chain and construction waste, which will add value and improve efficiencies to ERoad’s existing offering.
“Globally, and as part of a transformative move, the deal will deliver 64,177 additional connected units in North America, Australia and New Zealand and increases the speed ERoad reaches 250,000 units,” they said.