16th Jun 2014 07:03
LONDON (Alliance News) - Vodafone PLC Monday said it plans to acquire Italian security and telematics company Cobra Automotive Technologies SpA through a voluntary tender offer of EUR1.49 per share, valuing it at EUR145 million.
Telematics is the combination of telecommunications and informatics, often used to create technology for navigation systems in vehicles.
Vodafone said it has inked an agreement with Cobra's main shareholders, who have a total 73.96% interest in the company, to tender their shares in the offer. It has also agreed with some minority shareholders to acquire their 20% holding for EUR20 million.
The offer will be launched over the next few weeks and is subject to Italian law. It is expected to be completed in the third quarter of 2014.
Vodafone said that the acquisition was in line with its strategy to expand its machine-to-machine offering, as Cobra's telematics products and expertise will broaden its available services for automotive customers.
"The combination of Vodafone and Cobra will create a new global provider of connected car services," said Vodafone's Director of Machine-to-Machine Erik Brenneis in a statement. "We plan to invest in the business to offer our automotive and insurance customers a full range of telematics services."
Vodafone share were off 0.6% at 193.94 pence at the open Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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