LONDON (Alliance News) - Telematics and data provider Trakm8 Holdings PLC Tuesday said it has bought DCS Systems Ltd for GBP3.3 million in cash.
Cornwell-based DCS specialises in the design and distribution of camera systems for the motor vehicle, bicycle and security markets, and trades under the three main brands of RoadHawk, Dogcam and Lawmate.
DCS reported a GBP0.6 million pretax profit on revenue of GBP2.8 million in its financial year ended April 30.
Trakm8 said it funded the acquisition from its existing cash and bank facilities, adding that it has obtained a further debt facility of an additional GBP2 million, taking the total debt facility to GBP5.7 million, with GBP3.7 million is now drawn down following the acquisition.
Trakm8 added that it has appointed Sean Morris as group engineering director and Mark Watkins as group operations director, as well as Bill Duffy as an independent non-executive director.
"The acquisition of DCS marks another significant milestone in Trakm8's growth strategy and reflects the growing demand from our fleet and insurance customers for camera applications. We plan to deepen the integration of the camera technology into our telematics solutions for both our fleet and insurance clients," Chairman John Watkins said in a statement.
"Video data is increasingly used to monitor behaviour and to replay outcomes. The increase in the richness of the data generated by our telematics solutions will continue the trend of the increasing value for money in our propositions," Watkins added.
Shares in Trakm8 were trading up 3.9% at 158.90 pence early Tuesday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Trakm8 Hldgs (TRAK)