Russia’s Sistema has announced a deal to acquire M2M Telematics, a Russian fleet management technology firm. The deal gives Sistema a 51% stake at a price of USD 20 million.
The remaining 49% will be acquired by Sistema sometime within the next two two five years. The acquisition further enhances Sistema’s presence in the Telematics sector where portfolio companies RTI Systems and Sitronics are already heavily invested.
Sistema officials hope the deal will aid in the ongoing public-private joint effort to create a traffic emergency response network in Russia.
M2M Telematics (m2m-t.ru)
M2M Telematics was founded in 2005 to provide Telematics services in Russia using GPS and GLONASS technology. Telematics is system for monitoring vehicle speed, location, physical condition, and other factors desirable for efficient fleet management.
M2M sells its products through a distribution network of more than 50 partners whose influence covers most of Russia. To date M2M claims a 9% market share valued at more than RUB 900 million.
Moscow-based Sistema is a joint-stock financial corporation active in Russia and the CIS. The company was founded in 1993 as a vehicle to invest in and manage several petroleum interests in Russia. Today Sistema’s portfolio companies reach more than 100 million customers in the aerospace, banking, energy, healthcare, media, real estate, and technology sectors.
As of the end of 2007, Sistema boasted assets of USD 28.3 billion and total combined revenues of US 12.7 billion.
Company shares are publicly traded on the London Stock Exchange, RTS, MICEX, and MSE.