https://www.engineeringnews.co.za

Digicore, Novatel sign implementation agreement

Digicore, Novatel sign implementation agreement

Photo by Reuters

19th June 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

Shares in JSE-listed Digicore surged by 15% on Friday morning after the company received a R1-billion buy-out offer from Nasdaq-listed wireless broadband provider Novatel Wireless.

Months-long discussions between the San Diego-headquartered Novatel and the fleet management and vehicle-tracking group ended this week with a signed transaction implementation agreement.

The deal, through a scheme of arrangement or a tabled substitute, would see Novatel pay R4.40 a share for around 249-million shares, representing a 67.9% premium on the 30-day volume weighted average traded price of R2.62 apiece on May 7, when discussions started.

Novatel believed the absorption of Digicore as a subsidiary would establish the US firm’s position as a significant player in the global asset tracking and management market and would provide an immediate top-line contribution and a meaningful earnings contribution in 2016.

Digicore had just emerged from an extensive turnaround over the last year to bring it back into the black after being hammered by losses in 2013.

The group, which remained in the black during the first half of the year, was "cautiously optimistic" as it entered the final stretch of the year with its focus on delivering higher growth in revenue, reining in operating costs and stabilising its earnings.

The transaction remained subject to conditions precedent.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Axiom Hydraulics
Axiom Hydraulics

Axiom Hydraulics is a trusted leader in South Africa’s hydraulic industry, delivering world-class components, systems, and engineering expertise...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.049 1.103s - 122pq - 2rq
Subscribe Now