Trafficmaster Acquires Fleet Management Solutions

Trafficmaster are said to of recently been involved in a buyout of a company called Fleet Management Solutions who are a supplier of satellite-based tracking solutions. Fleet Management Solutions are based in California and are thought to have recorded a loss of 1.6 million dollars in 2008.

The buyout is said to involve initial 6.5 million dollars cash and 0.35 million dollars in shares and its thought up to 6 million dollars based on performance.

It is thought that Fleet Management Solutions had strength within the government, oil and gas market which is where reliable tracking systems are needed the most as can often be in the remote areas.

The cash side of the deal is said to be funded by Barclays and their debt facilities which has been extended to 17.5 million.

Surrounding this deal Trafficmaster have put new shares at 31p each in order to gain a total of 4.24 million gross which will represent around 10 percent of the existing issued share capital and a discount of 0.80 percent to the latest closing price.

Net proceeds are said to be used for providing additional working capital which will support the growth plan of Fleet Management Solutions and provide strength to their balance sheet whilst helping to finance areas of growth opportunities.

The Chief Executive Officer of Trafficmaster advised that the buyout of Fleet Management Solutions has enable Trafficmaster to expand globally and provide mobile asset management services anywhere in the world.