09:02 AM EDT, 04/08/2019 (MT Newswires) -- BSM Technologies Inc. GPS.TO), a provider of Internet of Things enabled telematics and asset management solutions, entered Monday into a definitive arrangement agreement dated April 7, 2019, that will see Geotab Subco acquire all of the issued and outstanding common shares of BSM not already owned by Geotab, in exchange for cash consideration of C$1.40 per BSM Share. BSM rose more than 5% to $0.99 on Friday, giving it a market cap of near $80 million.
According to a statement, the purchase price of C$1.40 per BSM share represents a total equity value, on a fully-diluted basis, of approximately C$117.3 million. The purchase price of C$1.40 per BSM Share also represents a premium of approximately 41%, 58%, and 77% to the closing price, 20-day volume weighted average price, and 60-day volume weighted average price, respectively, of BSM Shares on the Toronto Stock Exchange as of close of markets on April 5, 2019.
"This acquisition will allow BSM's technology and know-how in important verticals like government and rail to be made available through Geotab's cost effective, reliable, scalable and secured fleet management platform," Neil Cawse, Chief Executive Officer at Geotab, said in a statement. "The government telematics markets are key opportunities for Geotab and the addition of BSM's existing activity, level of knowledge and experience will not only benefit Geotab's government customers but also our strong partner ecosystem that is focused on serving this vertical market. Our expanded team will further equip both Geotab and our network of trusted Resellers with the tools necessary for future success in key growth areas including; municipal, state and provincial government and the electric vehicle market."
Louis De Jong, President and Chief Executive Officer of BSM, said. "Geotab's all-cash offer not only provides liquidity at a significant premium for BSM shareholders but it is also a great outcome for our employees and our customers."