1st May 2025 17:36
(Alliance News) - Trakm8 Holdings PLC on Thursday announced it has agreed the terms of a takeover by Brillian UK Ltd.
In response, shares in Trakm8 closed more than three times higher at 9.00 pence per share in London on Thursday afternoon, from 2.50p at Wednesday's market close.
Under the terms of the deal, shareholders in the Shaftesbury, England-based provider of fleet management software and data to insurers will receive 9.5 pence per share in cash, which values Trakm8's entire share capital at GBP7.8 million.
The offer price is nearly four-times higher than Wednesday's closing price.
The announcement follows Trakm8's warning in mid-March of a revenue shortfall for its financial year that ended March 31, after a key Optimisation contract failed to materialise. The firm at the time said it now expects to post annual revenue just under 10% lower than the prior year.
Brillian UK is part of Omegro, a portfolio within Volaris, which is one of Constellation Software Inc's six autonomous operating groups. Brillian UK provides vertical market software expertise and operational support to its subsidiaries.
"We are delighted that our proposal has been recommended by the board and are excited by the prospect of working with Trakm8 and its management team in the years ahead," said Omegro Co-Chief Executive Officer Troy O'Connor.
"Management have built a product portfolio which is well positioned to benefit from future growth in the fleet management, route optimisation and insurance telematics markets. The strategic fit of Trakm8 within the Omegro portfolio is compelling and with our long-term focus on our people, sustainable growth and delivering operational excellence, we expect to be able to create an enhanced customer proposition and leading business in the UK.
"Omegro believes Trakm8 is an ideal platform for continued growth and innovation in the fleet management vertical and we look forward to supporting Trakm8's growth in the future."
Major shareholder Microlise Group PLC on Thursday said it intends to vote in favour of the scheme at Trakm8's upcoming general meeting.
Shares in Microlise closed up 2.3% at 109.46p each in London on Thursday afternoon.
Microlise holds around a 20% stake in Trakm8 and also has a GBP1 million interest bearing loan outstanding to Trakm8, repayable on September 14 or convertible into Trakm8 shares at 8.1p per share.
By Emily Parsons, Alliance News reporter
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