Inseego INSG 1.73%↑ has announced the completion of the sale of its global telematics business for $52 million to Ctrack Holdings, a portfolio company of Convergence Partners. As part of an all-cash deal, Inseego’s will divest its telematics business operating in the United Kingdom, European Union, Australia and New Zealand.
“We are pleased to announce that the sale of our telematics business has been finalized, which will allow us to focus on our core 5G business,” said Philip Brace, Inseego’s executive chairman, in a statement.
The company said the sale of its telematics business will not only allow it to focus on 5G domestic markets, but allows it to have cash for recapitalization and debt reduction. This includes repaying a $6 million balance to lenders.
Continental Sells Zonar to GPS Trackit
In other fleet telematics news this week, Continental sold its Seattle-based Zonar Systems to GPS Trackit, which offers IoT and GPS fleet tracking solutions and is owned by Inverness Graham. Financial details were not disclosed.
Zonar will operate as part of the GPS Trackit portfolio while maintaining its fleet health and safety solutions, particularly in the government and education sectors, the company said. Zonar, founded in 2001, has more than 300 employees. It has pioneered smart mobility solutions throughout vocational, pupil, mass transit, and commercial trucking industries.
In other fleet telematics news:
- Ituran Location and Control $ITRN has announced that its joint venture in India, Lumax Ituran Telematics concluded a trial period for its connected telematic devices with Daimler India Commercial Vehicles. DICV tested Ituran’s devices across 15,000 plus vehicles operating in India and Lumax Ituran expects to continue to sell tens of thousands of connected devices to DICV annually, the company said.
- Toronto-based FleetOps, which is now called Class8, completed a $22 million Series A round. U.S.-based investors Xplorer Capital, with Commerce Ventures, invested in the fleet management company along with previous investors Inspired Capital and Resolute Ventures.
- A new survey by Teletrac Navman found that mobile phone use was the biggest factor in most distracted driving incidents. Nearly 49 percent of respondents said that distracted driving had a direct financial cost on their business. However, 78 percent of respondents are using advanced telematics solutions, the survey said.
