Boston, MA 09/05/2014 (wallstreetpr) – Omnitracs, LLC, a fleet management solution provider, agreed to acquire XRS Corp (NASDAQ:XRSC) for an equity value of $178 million ($5.60 per share of XRS). The merger already received the green signal from the board of directors of XRS and now seeks the approval of shareholders (major voting rights) and regulators.
Omnitracs appointed Jefferies as financial advisor and Kirkland & Ellis as legal counselor. XRS, on the other end, appointed William Blair as financial advisor and Faegre Baker Daniels as legal counselor. Omnitracs expects to close the merger by 4Q2014.
Rationale
XRS’s mobile fleet optimization software will be an ideal fit for Omnitracs to manage fleets that help in improving the productivity as well as reduce the operating costs, as said by John Graham, CEO of Omnitracs.
XRS Corp (NASDAQ:XRSC) led the trucking industry market with new mobile device solution for transportation management, and the association will increase the technology strength as well as expand Omnitracs’ portfolio. It will also create opportunities while offering new services to the existing and new customers.
XRS Corp (NASDAQ:XRSC)’ CEO, Jay Coughlan, also stated that the acquisition will increase the value of its shareholders as well as customers to access broad range of services of Omnitracs’ portfolio. It will expand the opportunities for customers across the transportation and logistics industry with the varying needs of the fleets.
In the past (December 2013), Omnitracs acquired companies such as Roadnet Technologies and Sylectus and FleetRisk Advisors to enhance the performance in fleet management. So, Omnitracs already established the technology domain and the addition will further enhance the efficiency.
Conclusion
Both the companies have a solid position in the fleet management and developing solution or technology to enhance their performance. So, the combination will be complimentary to each other and continue to develop products and services that will help the combined company to improve the productivity.
