As part of its strategy to strengthen its position in international markets, JSE listed Allied Electronics Corporation Limited (Altron) today announced that its wholly owned subsidiary, Netstar, had acquired 100% of the shareholding of Fleet Logistics (Pty) Ltd, an Australian fleet management business based in New South Wales, Australia. Trading as EZY2C, the company specialises in fleet management solutions for local government, the car rental industry, and commercial customers.
This is the second Australian acquisition by the group, with Netstar having acquired Pinpoint Communications in May 2015, an Australian business with more than 15 years of experience in offering services such as vehicle telematics; asset, fleet and works management; driver and personnel identification; and certified telematics.
Commenting on the EZY2C acquisition, Mteto Nyati, Altron Chief Executive, said that the acquisition would add to Netstar’s rapidly growing subscriber base in Australia and propels Netstar as a dominant competitor in the fleet management industry in Australia, with an installed base of over 40,000 vehicles.
“In 2015, we acquired Pinpoint Communications in the Australian market. That acquisition helped Netstar to leapfrog competitors in the fleet management and telematics space. Their strong research and development capabilities continue to provide the group with technology advantage. Netstar is gaining share in fleet management and delivered a solid performance in our last financial year,” he said.
“The EZY2C acquisition gives us scale in a market that is highly fragmented. It also extends our presence into new territories previously not covered by Pinpoint Communications. The combined operations will better serve both enterprise and government customers,” he added.
According to Harry Louw, Managing Director of Netstar, they had been working on this transaction for some time in the knowledge that it would provide Netstar with a dominant foothold in Australia’s local government market, which requires advanced and innovative solutions to meet their very high service delivery standards.
“Combining EZY2C solutions with Netstar’s wide range of solutions and low cost products will enable us to aggressively grow our business in Australia. I am also delighted that the joint Managing Directors of EZY2C, Evan Penn and Rick Firth, will be staying on in the business. This will enable us to develop the synergies that Netstar’s large footprint in Australia will bring to EZY2C,” Louw said.
Notes to Editors:
About Allied Electronics Corporation Limited
Allied Electronics Corporation Limited (Altron), through its principal subsidiaries, Altech and Bytes is invested in telecommunications and information technology. The Altron group employs more than 8 000 employees globally.
Netstar pioneered the stolen vehicle and tracking recovery industry in South Africa in 1994, and is a market-leading provider of digitally connected fleet management, vehicle tracking and recovery, and vehicle telematics services and solutions.
Owned by the JSE listed Altron Group, Netstar is based in Midrand, with regional and branch offices in all major South African centres. Netstar operations extend into Africa, with service providers in 12 African countries, as well as international operations based in Australia and Malaysia.
In addition to the Safe and Sound range of consumer products and services, Netstar’s digital fleet solutions include dynamic routing and scheduling software; on-board camera systems; fleet lifecycle management software; road logistics safety and compliance consulting and solutions; and satellite, bureau and web-based solutions. www.netstar.co.za.
For further information, please contact:
Chris Van Zyl
Head: Corporate Communications & PR – Altron
Tel: +27 11 645 3600
Cell: +27 82 335 3740
JSE code: AEL