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Cybit absorbs German logistics firm
Written by Sam Fountain   
Tuesday, 01 April 2008
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Cybit will use GPS satellites to track the Germans
Telematics provider, Cybit is has announced its cross-channel expansion with its purchase of German telematics operator, Truck24 for a total of 4m Euros (£3.2m) in cash and shares.

The Godmanchester-based said that it will consolidate its existing German operations into the Truck24 infrastructure, adding one of the leading telematics service providers to the German and German speaking HGV and logistics sectors to its books.

It said that the company has approximately 175 customers representing 3,000 vehicles installed across fleets based in Germany, Austria and Switzerland, and added that it stands to benefit from the economies of scale achieved by the combined business within the German market.

Cybit said that the 4m Euro consideration, which includes the repayment of 3.25m Euros in debt, will be satisfied by the payment of 1.8m Euro in cash, the issue of 3.5m new shares in Cybit and the issue of 797,032 Warrants over Cybit shares at a strike price of 49 pence.

Truck24 generated gross profits of 1.84m Euros in 2006, on revenues of 4.23m Euros, Cybit said.

"This is an important acquisition for Cybit, that significantly extends our presence in Germany and other German speaking markets," said Cybit's CEo, Richard Horsman.

"Truck24 is an established business with a recognized brand that will fit well with our existing operations. The market is very attractive as it has the largest vehicle population in Europe with over 50m vehicles in operation."

Cybit's shares remain unchanged at 47p.
 
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