Europe News: ITIS offloads NavTrak for £2.2m

Europe News:  ITIS offloads NavTrak for £2.2m

ITIS Holdings has sold its stolen vehicle tracking subsidiary, NavTrak, to Cobra Automotive Technologies for an initial payment of £2.2 million in cash.

An additional cash consideration of up to £1.38 million may become payable to ITIS over the next five years, subject to NavTrak meeting certain trading conditions.

The disposal of NavTrak will enable ITIS to focus entirely on its core traffic information business.

NavTrak’s unaudited revenue and pre-tax profits in the nine months to end-December 2006 were £3.50 million and £82,500 respectively. As at 31st December 2006, NavTrak had unaudited net liabilities of £0.96 million excluding inter-group debt.

According to ITIS chief executive Stuart Marks, whilst NavTrak is a profitable company, it has never benefited from the same economies of scale of its larger competitors, and has progressively become a non-core activity as ITIS has focused on its traffic information businesses.

Cobra CEO Carmine Carella said that the acquisition is consistent with the company’s objective of becoming the pan European provider of SVR services.

“This acquisition brings the following advantages: it gives Cobra a strong platform to directly provide SVR services in the important UK market, it brings solid relationships with prestige car manufacturers that can be leveraged in the rest of Europe and, offers potential synergies through the deployment of Cobra’s proprietary SVR modules and infrastructure,” said Carella.

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