California-based Trimble, a leading provider of advanced location-based solutions, has acquired Tata AutoComp Mobility Telematics Limited (TMT), a provider of telematics solutions and Mobile Resource Management (MRM) services in India and a wholly-owned company of Tata AutoComp Systems, a Tata Group Company, for an undisclosed amount.
According to Tata AutoComp Systems (TACO), the sell-off of TMT is a part of its strategy to strengthen core businesses.
"Tata AutoComp has devised its growth strategy for the period up to 2020. The TMT decision is in sync with our strategy to focus and strengthen our core business areas,” said R S Thakur, executive director and CEO of TACO.
Pune-based TMT, whose solutions are marketed under the "Trako" brand, serves large customers such as Bharat Petroleum Corp Ltd and Tata Group companies.
In addition to providing vehicle tracking, TMT offers a broad range of specialty telematics solutions including school bus applications that provide location information to parents via the Internet and SMS and bus tracking for state transport and city transportation services.
The company also does cargo management for logistics supply chain organizations to track and integrate vehicle location data with Enterprise Resource Planning (ERP) systems for on-road visibility of cargo, dispatch management for emergency service vehicles such as ambulance and fire and waste truck management applications.
Founded in 1978, the Nasdaq-listed Trimble’s revenues have grown from approximately $270 million in 1999 to over $1 billion in 2009. The company has been in an acquiring spree for the last 10 years acquiring over 45 companies in that period.
'When deliberating our options for TMT, including a new home for TMT, we were convinced that Trimble was the right choice given its worldwide position and service record in MRM. We are confident that all the customers of TMT, including various Tata companies, will continue to benefit from the TMT ownership by Trimble," Thakur said.
The Tata subsidiary acquisition is expected to expand Trimble's MRM solutions portfolio and allow the company to better address markets in India.
TACO, promoted by the Tata Group, provides products and services to the Indian and Global automotive OEMs as well as Tier 1 suppliers with a client list that reads like Ashok Leyland, BMW, Fiat, Force Motors, Ford Motors India, General Motors India, Honda, Mahindra & Mahindra, Mercedes-Benz, Nissan, Piaggio, Renault, Toyota, Volkswagen and Volvo-Eicher.
The company, which has six joint ventures in partnership with companies from the Global Auto Component Industry and has over 40 manufacturing facilities spread across India and China, last week said that it would acquire another 37.5% stake in Automotive Stampings and Assemblies Ltd (ASAL), a part of the Spanish company Gestamp Servicios, for around Rs 34 crore.
Once the deal is finalised, TACO will own 75% stake in the BSE-listed ASAL to make it a subsidiary, which is into manufacturing and marketing automotive components and aggregates made from sheet metal. The balance would be held by public.
According to TACO, this acquisition is part of its consolidation strategy whereby the company will focus on select product lines and grow the businesses it has in future.