Vecima acquires Contigo to boost asset tracking portfolio
March 15, 2016
Broadband equipment maker Vecima Networks has acquired the assets of fellow Canadian company Contigo Systems, a provider of turn-key GPS products for fleet management, asset tracking and personal safety for small to medium sized fleets.
Providing multiple forms of locatable devices and a web platform, Contigo is suited to the large and growing market for commercial fleet management. The technology allows monitoring of disparate types of location devices from on-board monitoring and diagnostics devices to smartphones, all on one unified platform using wireless network infrastructure.
"Contigo brings to Vecima over 15,000 subscribers, channel strength and a nimble development team with deep understanding of the telematics space," said Sumit Kumar, Vecima's president and CEO. “The addition of Contigo is complementary to our own FleetLynx business in terms of both geographic focus and target fleets adding significant presence in the service fleet vertical to Vecima's commercial trucking customer base. Not only is this acquisition immediately accretive, but by combining our businesses, we expect further synergies which should add to our overall EBITDA over time.”
Contigo’s two key products are RideAlong, for commercial vehicle tracking, and Alert & Assist, for lone worker safety. Contigo's revenues are approximately $5.0m annually, of which greater than 90 per cent is recurring.
"My team and I are excited to be joining forces with Vecima, a company with a proven track record of technology leadership," said Lindsay Ryerson, president and CEO of Contigo. “Our combined subscriber base, human resource pool and financial strength will position Contigo's platform for growth in the telematics market.”
Ryerson will join Vecima as vice president and general manager of the combined fleet business.
“We look forward to the addition of Lindsay and his team and backing them with the support of Vecima's resources to grow the business going forward,” said Kumar. "We are very excited to acquire this strongly performing company which will boost the telematics component of our business. Vecima has great respect for the team at Contigo and the quality of the business they have built."
Vecima Networks designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Its hardware products incorporate original embedded software to meet the requirements of high-speed digital networks.
Contigo's patented location-based platform enables businesses to monitor their vehicles, assets and personnel round the clock via the internet. Its products are distributed across the USA and Canada through a network of strategic partners and value-added resellers. Founded in 2002, Contigo is a privately held corporation based in Vancouver, British Columbia.