Trakm8 acquires camera systems provider DCS for £3.3m

16th Jun 2015 14:14

Trakm8, a telematics and data provider, has acquired DCS Systems for £3.3m.The acquisition of DCS, which designs and distributes camera systems for the motor vehicle, bicycle and security markets, is part of Trakm8's strategy to expand its telematics offering to insurance and fleet customers.Trackm8 funded the purchase from its existing cash and bank facilities and obtained a debt facility from HSBC of £2m. It expects DCS to be immediately earnings enhancing.For its financial year ending 30 April 2015, DCS reported full-year revenues of £2.8m and pre-tax profits of £0.6m.Executive chairman John Watkins said the acquisition reflects the growing demand from its fleet and insurance customers for camera applications."Video data is increasingly used to monitor behaviour and to replay outcomes. The increase in the richness of the data generated by our telematics solutions will continue the trend of the increasing value for money in our propositions," Watkins said.Also on Tuesday, the company announced three new appointments to its board of directors, reflecting the group's growth.Bill Duffy, Sean Morris and Mark Watkins will join the company as directors and are expected to enhance its corporate governance and integrate recent acquisitions.Following the news, FinnCap analysts increased their full-year sales and earnings forecasts and raised their target price on the stock to 185p.Shares were up 5.23% at 161p at 13:47.