Altech acquires ComTech
25 July 2007
News
Altech has signed an agreement to acquire fleet management company, ComTech, for Altech Netstar Fleet Management Services (ANFMS), subject to the fulfillment of certain conditions precedent. The potential full value of the deal is R90 million, of which R50 million is payable up-front and the balance over two years, dependent on specified and agreed profit targets being achieved.
Altech, South Africa's market leader in stolen vehicle recovery (SVR) through its subsidiary Altech Netstar with 41% of the market, will now dramatically increase its share of the fleet management market with this deal, growing its market share from 8% to approximately 20%, effectively doubling its subscriber base.
"ComTech has an excellent reputation for developing and managing advanced fleet management solutions, and has produced profitable results, positioning it well to gain traction as this industry accelerates," says Altech CEO, Craig Venter. "Their technology, their management, their footprint in Africa, together with their vision are well-aligned to ours, particularly in light of our own global expansion activities."
ComTech, with turnover of approximately R100 million per annum, has been in operation for 12 years and boasts a staff complement of 140 highly experienced personnel. Brian Edmonds, managing director of ComTech, says: "We are very pleased with the transaction and view the acquisition as an opportunity not only for the expansion of Altech Netstar Fleet Management Services, but also for the longevity and growth of ComTech's formidable team and excellent customer base."
A new holding company will be created in which Altech will hold 75% and Nariku (the black empowerment partner of ANFMS) will hold the remaining 25%. Both ANFMS and ComTech will be wholly owned subsidiaries of this new holding company, which will be called Altech Netstar Fleet Management Holdings.
Venter further commented: "This acquisition positions Altech Netstar Fleet Management Services with a significant market share presence in the high growth South African fleet banagement market."
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