Trafficmaster Plc Acquisition of Fleet Management Solutions®, Re-financing of Debt, and New Equity Placing of New Ordinary Shares
Trafficmaster Plc (“Trafficmaster” or the “Company”), the leading supplier of intelligent driving services, is pleased to announce the acquisition of Fleet Management Solutions, Inc. (“FMS”) (the “Acquisition”), the refinancing of its debt facilities and an equity placing.
Acquisition of FMS
SAN LUIS OBISPO, California, January 18, 2010 – FMS is a fast-growing provider of satellite-based tracking solutions for remote-based mobile assets. It was established in California, USA in 2004, it has developed rapidly into a leading provider of satellite-based, reliable tracking services. Its flagship product, Fleet Director Global, allows users to manage the safety and security of their vehicles, employees and other mobile resources in areas outside of reliable mobile phone coverage.
FMS has a broad range of customers, but has developed particular strengths in the Government and Oil and Gas markets. In both these markets there is a requirement for highly reliable, secure tracking services to manage assets in remote parts of the world. FMS has the US Government’s Department of Homeland Security (“DHS”) and several of the world’s most significant Oil and Gas upstream service companies amongst its customers. FMS is in the process of equipping the DHS’s Enforcement and Removal Operations’ fleet of 4,500 vehicles with its mobile resource management system to optimise efficiency, and has a substantial pipeline of additional customer opportunities.
Trafficmaster expects the transaction to deliver synergies, including access to the benefits of Trafficmaster’s sales resource, enlarged product development capability and existing backoffice support infrastructure. Trafficmaster also believes there are significant cross-selling opportunities, and that the Acquisition will enable FMS to accelerate its growth and deliver its potential.
FMS starts 2010 with a significant contracted order book and Trafficmaster expects that the acquisition will be earnings enhancing in the current financial year. The acquisition agreement entered into is legally binding, and subject to a number of customary conditions to completion. It is anticipated that these steps will be completed within approximately seven days, after which the transaction will formally close.
Tony Eales, Chief Executive Officer, commented: “The acquisition of FMS enables us to expand our service offering on a global basis. Whilst our Fleet Director service provides exceptional levels of functionality in the local and long-haul fleet market, the addition of FMS will allow mobile asset management services to be delivered anywhere in the world. We are looking forward to working with Cliff Henley and his team at FMS to deliver best-in-class services to new and existing customers.
We are also pleased to announce the refinancing of our debt facilities with enlarged, long-term facilities provided by Barclays. These facilities, and the proceeds of the equity placing, will allow us to continue to expand the Group, and to take advantage of the significant opportunities for growth that we see in our markets.”
Fleet Management Solutions, Inc.