EROAD to acquire Coretex
EROAD has entered a conditional agreement to acquire 100% of Coretex Ltd
EROAD has agreed to acquire 100% of Coretex Limited, a telematics vertical specialist provider delivering enterprise grade solutions. This is a transformative move, improving EROAD’s position as a vehicle telematics leader and taking a strong step toward its goal of reaching 250,000 units, the company said.
"We have always stated that acquisition would be part of our growth strategy to reach our medium- and long-term goals. We have been clear we would seek complementary and proven technology to augment our product range. To accelerate growth, any acquisition target needed to deliver increased capability, improved customer experiences, and access to additional market verticals. In Coretex, we have found a highly complementary partner which allows us to satisfy these criteria," says Steven Newman, CEO of EROAD.
Both EROAD and Coretex are home-grown New Zealand tech start-ups, which have enjoyed sustained success on the global telematics stage.
"The fact that both businesses have been focused on the same international markets but have matured with complementary strengths is incredible," says Steven.
"The real winner is New Zealand tech. We see so many New Zealand tech start-ups being acquired by international players and jobs going offshore once they reach a certain size. It feels great to be able to reverse that trend for once and lead to industry disruption from this end of the world."
Once complete, the combined organisation will strengthen its market position as a significant supplier of in-vehicle fleet management solutions and trailer telematics in the North American market.
Post completion, EROAD will have a base of 190,380 active units across all three markets. EROAD will also be able to realise accelerated and sustained growth in all markets through faster innovation, better product design, and delivery of an exceptional customer experience, the company said.
The joint expertise of Coretex and EROAD will put the combined organisation at the forefront of the industry's digital transformation.
"We’re putting our technology and industry experience in the hands of exceptional operators with a strong regulatory telematics base, demonstrated success in commercial scaling and in user experience design. All while staying in New Zealand. The future looks very promising!" says Selwyn Pellett, CEO of Coretex.
The acquisition is expected to complete in H2 FY22, as it is subject to Shareholder, New Zealand Commerce Commission approval and Overseas Investment Office consent.
Upon completion, Selwyn will join the EROAD Board as an executive director. During this time, Selwyn will be an advisor to Steven Newman (who remains EROAD’s CEO) to support the successful integration of the two businesses.
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