CalAmp buys vehicle-tracking biz for $19M

Wireless communications company CalAmp Corp. announced it will purchase the GPS-based vehicle-tracking service of AirIQ Inc. for $19 million in cash.
“The acquisition of AirIQ’s Vehicle Finance division significantly expands CalAmp’s existing mobile resource management business with a complete end-to-end solution and leading position in this burgeoning market,” said Fred Sturm, CalAmp’s president and CEO. “We believe there is growing demand for this service by vehicle lenders seeking ways to mitigate payment default risk and preserve the value of their collateral. Moreover, as the equipment manufacturer and service provider, CalAmp will benefit through both hardware sales and recurring service revenue from an installed customer base of approximately 150,000 vehicles.”
CalAmp said AirIQ’s business, which operates under the Aircept brand, brought in $15 million in revenues last year. The business sells GPS- and cellular-based wireless asset tracking products and services to auto lenders.