Ctrack South Africa will break away from Inseego following a purchase by investment management firm Convergence Partners.
Convergence Partners will purchase the shares of the current South African entities.
Inseego decided to divest Ctrack following a new demand on technology and Inseego’s 5G business, accelerated by the recent global pandemic.
A strategy to focus on target markets that are closely aligned with their 5G business growth.
“We believe that this new partnership will bring a wealth of business knowledge and envisage many opportunities and positive synergies to benefit our business in general,” explains Hein Jordt, managing director of Ctrack SA.
“Our continued growth and success are what has enabled us to show favourable results, a motivator for Convergence Partners to invest during these times.”
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The business will continue in its current form and retain the Ctrack brand name, which spans 30 years.
Ctrack will continue to use their brand and related product names in the markets they serve.
It will expand into new territories in Africa and the Middle East while developing world-class technologies for its customers.
“Our interest in the business relates to its proven market leader in the development of analytics solutions using big data extracted from the cloud platform,” says Mr Andile Ngcaba, chairman of Convergence Partners.
“We believe that our ownership of Ctrack will catalyze to enhance and accelerate its digital ambitions further,” Ngcaba concluded.
“Ctrack’s IOT and data analytics capabilities are a key component of an emerging sector in Africa and a good fit with our strategy of identifying high growth market players that build digital infrastructure in the continent,” adds Brandon Doyle, CEO of Convergence Partners.
“We believe our expertise can elevate the Ctrack business to new heights.”
“The management of Ctrack are confident this new partnership will open up a gateway of opportunities for the business. The company is better positioned to move forward and capture market opportunities,” concluded Jordt.
The transaction is subject to receipt of regulatory approvals and other closing conditions. It is expected to close during the second quarter of 2021.
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