South African-based vehicle tracking firm Cartrack is planning to list on Nasdaq Stock Exchange.
The firm is planning to delist on the JSE and reappear on Nasdaq as Karoooo.
Singaporean-based Karoooo (formerly Karoo) is owned by Cartrack founder and CEO Zak Calisto, who also owns 68.5% of Cartrack.
As part of the listing of Karoooo on Nasdaq, Calisto is planning to buy out minorities. However, there is an option o swapping their Cartrack shares for shares in Karooooo.
The plan is to float Karooooo on the Nasdaq, with an inward listing on the JSE.
Cartrack provides services related to stolen vehicle recovery, fleet management and insurance telematics through Software as a Service (SaaS).
The company competes with JSE-listed Digicore, which was acquired by US-based technology firm Novatel for R1.1 billion. It also competes with JSE-listed Mix Telematics and Tracker.
The deal by Karoooo values Cartrack at R4 billion.
The Cartrack Board said it believes that the proposed transaction will create a more efficient global corporate and operating structure. The board further states that the deal will accelerate the Cartrack group’s global growth strategy and enable it to attract and retain international talent to Singapore (a country which attracts global talent).
The deal is also expected to provide the Cartrack Group with access to global technology infrastructure and research and development; and assist in attracting a substantially larger and more diverse international pool of investors who understand the long-term value dynamics of Software-as-a-Service (“SaaS”).
The board also expect that the deal will potentially yield a re-rated company valuation of the Cartrack Group similar to global software peers.
Cartrack has a presence in more than 20 countries in Africa, Europe, USA, Asia and the Middle East. As part of its international expansion drive, Cartrack opened new operations in six countries in Asia and the Middle East at the end of 2015, using the established Singapore business as the central hub for the region.
Cartrack was listed on the JSE on 19 December 2014.
