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Johannesburg - Automotive giant Imperial has acquired a 25.4% stake in JSE-listed vehicle tracking device maker MiX Telematics [JSE:MIX] in a deal worth R160m.
"Vehicle tracking will be just another product in our suite of motor industry-related offerings," said Tak Hiemstra, executive director of Imperial Holdings [JSE:IPL].
MiX products are GSM-based devices that assist in stolen vehicle recovery. The group's South African brand is Matrix Vehicle Tracking, and it is the country's third-biggest vehicle tracking product.
Imperial plans to sell these devices through existing Imperial channels, such as the company's dealerships and motor insurance arm.
MiX also has interests in fleet management, a newly-identified growth area for Imperial. The company said that these fleet management solutions "may also find applications in the Imperial group".
The acquisition is not expected to make a major difference to Imperial's bottom line, as the R160m value of the stake is small compared to Imperial's market share of R20bn.
However, it is in line with the group's growth strategy to bulk up the asset-light divisions of its transport operations.
Imperial announced earlier this year that it is looking for acquisition opportunities and would be willing to spend as much as R4bn - or a fifth of its market share - on a well-placed asset.
Hiemstra said that more acquisitions could be on the cards this year, although nothing is "firm" as yet. He added that Imperial does not have plans to increase its stake in MiX in the foreseeable future.
- Fin24.com
