Trakm8's shares surge on proposed acquisition of BOX Telematics

8th Oct 2013 10:44

Trakm8, which designs and develops hardware and software for the vehicle placement and security market, is looking to buy BOX Telematics.The company has proposed purchasing BOX, a provider of fleet management systems, for an initial cash consideration of £3.5m which will be funded through newly signed £2.5m debt facility. Trakm8 has also raised £1.35m before expenses through the placement of 6,136,363 new ordinary shares at a price of 22p. The group said the acquisition will expand its telematics offering by consolidating existing technical and software expertise with the manufacturing capabilities of BOX. The acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules for companies so will require shareholder approval."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," said Chief Executive Officer, John Watkins. "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." Shares surged 42.86% to 11:05 on Tuesday.RD