DigiCore provide immediate financial stability for Minorplanet
DigiCore has invested £3 million in a newly formed subsidiary of UK telemetry provider Minorplanet. Under the terms of the deal, DigiCore will take a 25 per cent stake in the new operation that will include all Minorplanet’s UK assets including its existing customer base.
The creation of the new subsidiary will provide immediate financial stability for Minorplanet, which has faced significant financial problems that have severely limited its ability to sell and raise lease finance.
The subsidiary will combine the strengths of Minorplanet in the UK SME market with its customer service and software competence together with DigiCore’s commercial presence and established position in the corporate market. It will provide both companies with the potential to create a significantly larger telematics platform across Europe and be well positioned to take advantage of the opportunities that this is likely to bring.
Nick Vlok, Chief Executive of DigiCore Holdings Limited commented: “Minorplanet is a long established business within the telematics sector with considerable experience and expertise. We hope this is the start of a relationship that we can develop further for our mutual commercial benefit by taking advantage of growing demand for tracking solutions in the UK and mainland Europe.”
Terry Donovan, Chief Executive of Minorplanet, said: “This is a positive development for the Group given the economic backdrop. DigiCore is a leading international vehicle tracking provider and their assistance and recognition of the inherent value of Minorplanet’s major subsidiary, the value of the customer base and its experience in providing telemetry solutions. We believe their commitment to the new subsidiary offers an opportunity to maximise our business within the UK and across mainland Europe.”
DigiCore is a wholly owned subsidiary of DigiCore Holdings Limited, which is listed on the Johannesburg Stock Exchange and specialises in the research, design, development, manufacture, sales and support of technologically advanced GPS/GSM fleet management and vehicle tracking solutions.
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