Vecima Networks Announces Acquisition of Contigo Systems Inc.
VICTORIA, BC --(Marketwired - March 03, 2016) - Vecima Networks Inc. ("Vecima" or "Company") (TSX: VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, today announced that it has acquired the assets of Contigo Systems Inc. ("Contigo"), a Vancouver-based private company.
Contigo is a leading provider of turn-key GPS solutions for fleet management, asset tracking and personal safety for small to medium sized fleets. Providing multiple forms of locatable devices and a state-of-the-art web platform, Contigo's solution is ideally suited to the large and growing market for commercial fleet management. The technology allows monitoring of disparate types of location devices from on-board monitoring/diagnostics devices to smartphones, all on one unified platform using wireless network infrastructure. Contigo's two key products are RideAlong, for commercial vehicle tracking, and Alert & Assist, for lone worker safety. Contigo's revenues are approximately $5.0 million annually, of which greater than 90% is recurring.
"Contigo brings to Vecima over 15,000 subscribers, channel strength, and a nimble development team with deep understanding of the telematics space. The addition of Contigo is complementary to our own FleetLynx business in terms of both geographic focus and target fleets adding significant presence in the service fleet vertical to Vecima's commercial trucking customer base. Not only is this acquisition immediately accretive, but by combining our businesses, we expect further synergies which should add to our overall EBITDA over time," said Sumit Kumar, Vecima's President and CEO.
"My team and I are excited to be joining forces with Vecima, a company with a proven track record of technology leadership. Our combined subscriber base, human resource pool, and financial strength will position Contigo's platform for growth in the telematics market," said Lindsay Ryerson, President and CEO of Contigo.
"We are very excited to acquire this strongly performing company which will boost the telematics component of our business," added Mr. Kumar. "Vecima has great respect for the team at Contigo and the quality of the business they have built. Mr. Ryerson will join Vecima as Vice President and General Manager of the combined fleet business. We look forward to the addition of Lindsay and his team and backing them with the support of Vecima's resources to grow the business going forward."