International Telematics Holdings and Imarda have formally merged to form Coretex Ltd.
Milford Active Growth Fund has poured $6m into the venture, and will invest up to $10m in total.
Coretex’ chief executive Selwyn Pellet – previously boss of Imarda – says both companies have been experiencing strong growth here, Australia and in North America.
He says the Milford investment will enable Coretex to scale up quickly, and to take advantage of market opportunities.
“This merger creates a strong company positioned to maintain its high growth,” he said.
“As a combined entity we are on track to meet our full year revenue target of NZD $30 million, which will represent year-on-year revenue growth of more than 50 percent.”
“The additional capital, combined with the wealth of experience, talent, intellectual property, customer and channel relationships, will allow Coretex to continue to develop and deliver world-class fleet management solutions for our customers while creating long-term value for our shareholders.
The Milford fund’s involvement is the result of it working with both companies pre-merger, and it too sees rapid growth potential.
“The global fleet management market is growing rapidly as transport operators seek greater efficiency, customer visibility and regulators improve compliance around food safety, driver behaviour and tax collection,” says Milford portfolio manager Brooke Bone.
Pellett backs this up, adding that more than 72% of the companies sales are from outside New Zealand, with 45% generated from North America.
