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LONDON - Trakm8 Holdings PLC, a technology solutions provider for fleet management and insurance telematics, is set to be acquired by Brillian UK Limited, a subsidiary of Constellation Software Inc (TSX:CSU)., in a cash deal. The acquisition, announced today, is recommended by the directors of both companies and is valued at approximately £7.76 million.
Trakm8 shareholders are entitled to receive 9.5 pence for each share they hold, which is a significant premium over recent trading prices. This offer represents a 280% premium over the closing price on the last business day before the offer period began, and higher premiums over the average prices in the preceding one, three, and six-month periods.
The deal is structured as a Scheme of Arrangement and is subject to shareholder approval and court sanction. It is anticipated to be completed in the second or third quarter of 2025.
The boards of Trakm8 have expressed their unanimous support for the acquisition, citing the immediate and certain cash value it provides to shareholders in light of the company’s recent financial challenges and uncertain market conditions. Trakm8 has faced a slow recovery in the UK vehicle insurance industry, impacting device sales and recurring revenue. Despite efforts to reduce costs and improve operations, the directors believe that the acquisition by Brillian UK offers a path to sustainable growth and access to capital that would be challenging to secure in public markets.
Brillian UK, part of the Omegro portfolio within Constellation Software Inc.’s Volaris operating group, sees the acquisition as an opportunity to support Trakm8’s growth and innovation in its core service areas. The transition to private ownership is expected to provide Trakm8 with the strategic and operational flexibility needed to return to profitability and capitalize on future growth opportunities.
The directors of Trakm8, holding approximately 23.11% of the company’s issued ordinary share capital, have irrevocably committed to vote in favor of the acquisition. In total, shareholders representing approximately 53.79% of the existing issued ordinary share capital of Trakm8 have provided irrevocable undertakings to support the deal.
This announcement is based on a press release statement, and the acquisition is still subject to the approval of Trakm8 shareholders and the satisfaction of other conditions as outlined in the Scheme Document.
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