Telecom Lead America:
CalAmp has signed a five-year deal worth $25 million to provide fleet tracking
products to Navman Wireless, a GPS-based fleet optimization products provider.
The transaction involves the acquisition of certain products
and technologies from Navman Wireless. CalAmp also set up an R&D center in
Auckland, New Zealand staffed by 14 employees transferred from Navman Wireless.
CalAmp will expand its footprint in Asia Pacific, Western
Europe and South America where Navman Wireless has a strong customer base.
The assets acquired by CalAmp include technology for Mobile
Display Terminals (MDT) and an MDT product line currently marketed to
telematics OEMs globally. These MDT products will complement and expand
CalAmp’s existing Mobile Resource Management (MRM) product offerings and
increase the size of CalAmp’s served markets.
The value of the acquisition is $6 million.
CalAmp expects the supply agreement to generate revenues of
$5 million over five years, with additional growth opportunities through MDT
product line sales.
“The Auckland-based R&D team will augment our core
domestic R&D activities, adding an experienced team of engineers who
possess key domain expertise in MRM technology product development. Our
expanded capacity to develop complementary products such as MDTs will not only
extend our product offerings to our existing customer base, but allow CalAmp to
bring to market enhanced platform solutions for fleet management service
providers,” said Michael Burdiek, president and CEO of CalAmp.
“Bringing CalAmp on as our hardware partner will
benefit fleet operators by optimizing both software and hardware development.
We can now dedicate all of our resources to delivering next-generation fleet and
asset management tools through our OnlineAVL2 platform, while CalAmp’s R&D
team can apply their expertise to designing complementary next-generation
hardware products,” said TJ Chung, president and CEO of Navman Wireless.