ERoad has entered into a conditional agreement to acquire Coretex Ltd., a provider of telematics solutions in North America, Australia and New Zealand. The company says this will help it take a strong step toward reaching its goal of 250,000 units. Once the acquisition is complete, it will accelerate ERoad’s key growth metrics by two years in North America and Australia and position the combined business as a bigger player in the global telematics market, the company noted in a press release.
The acquisition’s total offer consideration is NZ$157.7 million in upfront consideration and NZ$30.6 million in contingent consideration (payable in fiscal year 2023 subject to Coretex achieving certain performance milestones). The acquisition is expected to complete in the second half of fiscal year 2022, and it is subject to ERoad shareholder and New Zealand Commerce Commission approval and New Zealand Overseas Investment Office consent.
Upon completion, Selwyn Pellett will join the ERoad Board as an Executive Director and as an advisor to Steven Newman, ERoad’s CEO, to support the successful integration of the two businesses.
