Technology investor Convergence Partners has entered into an agreement with Inseego to acquire 100% of Ctrack’s operations in Africa and the Middle East.
The transaction will be the maiden investment for its third fund, the Convergence Partners Digital Infrastructure Fund (CPDIF).
The agreement is subject to a number of conditions, including approval by the Competition Commission.
Ctrack is a telematics software-as-a-service digital infrastructure platform, providing fleet management, insurance and weather telematic solutions, as well as asset tracking products, to its subscribers in Africa and the Middle East.
Convergence Partners says the business’ Internet-of-Things (IoT) and data analytics capabilities are a key component of an emerging sector in Africa and the company is a good fit with CPDIF’s strategy of identifying high-growth market players that build digital infrastructure on the continent.
“Our interest in the business relates to its proven market leadership in the development of analytics solutions using big data extracted from the cloud platform,” says Convergence Partners chairperson Andile Ngcaba.
“We believe that the business is well poised to use its market advantage to further its ambitions in the automotive technology space, by continuing to develop its IoT and artificial intelligence competencies.
“As the world enters the automotive ethernet, Ctrack is well positioned for vehicular communication systems, such as vehicle-to-vehicle and vehicle-to-everything connectivity, and the business will subscribe to 5GAA protocols in the 5.9 Ghz band.
“We thus believe that our ownership of Ctrack will serve as a catalyst to enhance and accelerate its digital ambitions further.”