Press Releases in 2002
Trafficmaster
Disposal of Trafficmaster's UK subsidiary Fleetstar to CybIT Holdings
May 2002
CybIT acquires Fleetstar subsidiary from Trafficmaster to become one of UK's leading telematics companies £ 1.5 million deal sees CybIT merging Fleetstar fleet management business with existing telematics services.
CybIT Limited, a leading provider of telematics and online services, is set to become a leading player in the telematics based asset management space with the acquisition today of certain business assets and Intellectual Property Rights of Fleetstar Information Systems Limited for £1.5 million from Trafficmaster plc.
Fleetstar, a UK subsidiary of Trafficmaster plc was set up by Trafficmaster just over 18 months ago and has incorporated Trafficmaster's technological expertise and developments into a versatile fleet management information system. Fleetstar helps its clients to optimise and control their fleet operating costs; protect and locate their drivers; and improve the overall levels of customer service that they provide. Fleetstar has several thousand installed units across the UK and is already delivering significant return on investment for fleet operators and a growing number of service sector customers through strategic partnerships with major UK organisations such as Norwich Union Insurance.
" This is an exciting acquisition for CybIT as it continues our momentum into the UK market and immediately positions the combined CybIT/Fleetstar business as a one of the leading UK telematics based asset management vendor, effectively doubling the size of our UK operation," commented Richard Horsman, CEO of CybIT. "There are compelling technology and business synergies between the Fleetstar service and CybIT's advanced telematics solutions, online services, and 24/7 bureau operation, and our business going forward will continue to focus on delivering measurable return on investment for our growing UK customer base.
" In Fleetstar we're acquiring a significant business, while our ongoing strategic relationship with Trafficmaster also gives CybIT a pipeline of excellent traffic information products and services which we can integrate within our current product portfolio," he continued. "CybIT has also acquired the IPR to the Fleetstar on-line service, and the strategic relationship gives us access to market Trafficmaster's core Smartnav satellite navigation system - ensuring that CybIT continues to set the standard in bringing innovative and first-rate traffic information products and services to market."
David Martell, Chief Executive Officer, Trafficmaster plc, added: "This deal enables Trafficmaster to concentrate on its core business of the collection and distribution of traffic information and, at the same time, to realise the value from our investment in the fleet management market. Our shareholding in CybIT will enable us to continue our relationship with the company and provide an on-going route to market for our traffic information in the fleet segment."
Alan Bristow of ICON who advised Trafficmasters management team added "We were delighted to have advised on the transaction, Fleetstar has developed market-leading products and services that benefit from latest technology advances, which made them a very attractive acquisition and there was considerable interest, however, CybIT offered the best future for the company."
CybIT will acquire the following assets and IPR of Fleetstar in the UK:
* Fleetstar's existing customer base;
* all goodwill;
* an exclusive licence in respect of the Fleetstar
and IPR relating to Fleetstar on-line software;
* Fleetstar's order book and work in progress;
* the company name;
* the Fleetstar website; and
* key members of Fleetstar staff.
Following the acquisition, CybIT staff will remain within Trafficmaster's UK Head Quarters building in Cranfield, and will also continue using the Fleetstar brand. An integrated field sales force will focus on selling Fleetstar and GPService Pilot into the SME market, while a national accounts team will concentrate on delivering solutions to the larger corporate sector.
CybIT was supported throughout the acquisition by Billam plc, the executive of which initiated the transaction. Billam plc is a major shareholder in CybIT, holding 43.31 per cent of the current issued share capital.
