(Sharecast News) - Subscription-based vehicle tracking specialist Quartix Technologies announced the acquisition of Konetik Deutschland on Friday.
The AIM-traded firm said Konetik is the mastermind behind the software used in Quartix's 'EVolve' electric vehicle product.
The acquisition would solidify Quartix's position in the electric vehicle software segment with active operations in Berlin and Budapest.
For the acquisition, Quartix said it would be shelling out a total of €3.9m (£3.4m), all of which would be paid in cash.
That sum would comprise an upfront payment of €2.5m, with the rest, up to €1.4m, being deferred.
The deferred consideration amount hinged on the number of EVolve subscriptions acquired in the subsequent 24 months.
To ensure a structured payment process, payments towards the deferred sum would be dispensed every six months.
Quartix said that, as the consideration would be drawn from its current cash reserves, there would be a decrease in the 2023 supplemental dividend.
However, no adjustments would be made to the ordinary dividend or the company's future dividend policy.
"We are incredibly pleased to have acquired the underlying technology to EVolve, a SaaS product which provides the business with additional recurring revenue and enables our customer base to make the necessary transition towards more sustainable fleet operations," said chief executive officer Richard Lilwall.
"The acquisition will allow us to bring our excellent relationship with Konetik in-house, enabling increased efficiencies in developing the product going forward as more operators address the challenges and opportunities of electrifying their fleets."
At 1029 BST, shares in Quartix Technologies were down 3.33% at 203p.
Reporting by Josh White for Sharecast.com.
Quartix Tech (QTX)