THE DEFINITIVE TRUCKING SITE



Past Issues

June 2007


Merger

Hills Haulage is just one of the many overseas clients which will benefit from even more telematics offerings that are sure to arise from the new merged CI OmniBridge/Matrix group.

A giant has been born in the fleet management and vehicle tracking arena following an agreement signed by Control Instruments to merge its fleet management interests with Matrix Vehicle Tracking Limited. This includes CI OmniBridge, one of the world's leading providers of fleet management solutions, CI OmniBridge's US based business Tripmaster Corporation as well as the recently acquired Datatrak and Siemens VDO Fleet Telematics businesses in the UK.

Control Instruments Group Limited announced that it had signed an agreement in May whereby its fleet management interests will be merged with Matrix Vehicle Tracking Limited and the new combined business will be listed on the JSE, subject to JSE approval. 

The businesses of both companies complement each other very well with CI OmniBridge focussed primarily on commercial vehicle fleet management and Matrix on consumer vehicle tracking and personal safety. The merged entity will enjoy a combined base of in excess of 165 000 subscribers, a global installed base of over 450 000 vehicles and a distribution network in more than 40 countries world-wide. It will be a powerful player in the world market with offices in South Africa, the United Kingdom, Germany and the USA.

"Merging the two businesses is a logical step and combines Matrix's substantial existing annuity revenue stream and customer base with CI OmniBridge's proven technology platform and product development capability as well as its international distribution network and customer base," says CI OmniBridge MD Charles Tasker. 

"The two businesses operate in different sectors of the fleet telematics market, which creates many synergistic opportunities and sets up the new business to focus on all levels of fleet telematics - globally. The combined business will have a critical mass, a global presence, proven technology and a large customer base" he added. 

"Control Instruments was one of the founding partners of Matrix and the companies know each other well. With the strong growth of both businesses over recent years, it makes absolute sense to maximise the value and potential by merging the two," says Tasker. 

FleetWatch caught up with Stefan Joss, CEO of Matrix Vehicle Tracking in London where he was inspecting the UK operations of CI before flying off to check out its USA operations. He was upbeat about the merger.

"We're creating a super-sized local and international tracking and services company with the beauty of it being that there is no competitiveness between us. We are two similar but different businesses and the merger will give us the ability to compete more effectively in an area where the needs of fleet management and security are converging. The products will be kept separate but will enjoy an integrated service which will make us cost effective without diluting the operational effectiveness of either service," he said.

What we're talking here is a giant One-Stop shop for all telematics needs. It's a big one as evidenced by the fact that, according to Jos, the combined entity will go to the market at a value of between R1,2 to R1,5-billion. 

Spreading tentacles
While both CI OmniBridge and Matrix are well known to FleetWatch readers, it is interesting to see how the tentacles of CI have spread around the world providing solutions to operational needs that are not dissimilar to many of our local needs.

Take UK-based Hills Haulage as an example. This company, whose principle activities are recycling, waste management, aggregates and new homes, equipped its fleet with the latest Fleet Management solution from CI OmniBridge, the FM300 Communicator.

The Hills Group, of which Hills Haulage forms an integral part, was founded more than 100 years ago and is a family owned business based in Wiltshire. Their initial approach to CI was driven by the need to install a fleet management system that would enable them to reduce their fuel usage and in that way, lower the total amount of pollution that its fleet produced while also saving fuel costs. The company also wanted a solution that could monitor driver performance and utilization while being able to effectively track the fleet.

With assistance from SVDO UK, Hills Haulage installed CI's FM300 Communicator into its fleet, which has led to the company being able to monitor the fleet's fuel efficiency, reduce wear and tear, and reduce idling time to enhance productivity. The FM300 Communicator monitors how a driver is driving and how the vehicle performs as a result, a fact that lead to Hills Haulage observing a return on their investment in just four months.

According to CI, not only did Hills Haulage see a return on their money but the company recorded a saving of £3 500 (close to R50 000) per vehicle per year, and has reduced maintenance across the fleet by one day per month. By using the daily activity timeline report, average driving days have been enhanced by 30 minutes per vehicle. At the current average revenue per hour of £40 (R570), this amounts to an extra saving of £1 400 (around R20 000) per week across the fleet.

It all sounds familiar - and so it should. After all, the products making all this possible come from South Africa and these same products will now be given enhanced stature via their link with Matrix's fine security products. This is one merger that is sure to be a winner.

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