German automotive parts manufacturer Continental has divested Zonar Systems, a US-based smart fleet management provider, to GPS Trackit.
The company did not disclose any details of the transaction, including the financial terms.
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The deal is in line with Continental’s Group Sector Automotive strategy, unveiled last year, which aims to prioritise its “core strengths” and simplify its business operations.
Continental executive board member and head of Automotive Philipp von Hirschheydt said: “The decision to sell Zonar is part of our broader automotive strategy to sharpen our focus and enhance our fundamental strengths.
“As the market continues to evolve, our focus on value creation is the cornerstone of our strategic efforts. Continental is committed to leveraging innovation and operational excellence to strengthen its position in the marketplace by further investing in its core competencies to prioritize its growth.”
Zonar, established in 2001 and based in Seattle, Washington, employs over 300 people.
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By GlobalDataThe company has been involved in developing smart mobility solutions for various industries, including vocational, pupil transportation, mass transit, and commercial trucking.
GPS Trackit CEO Charles Kriete said: “We are thrilled to welcome Zonar to the GPS Trackit family. This acquisition represents a significant step forward in our mission to deliver innovative, customer-focused fleet management solutions.
“By combining our strengths, such as our best-in-class video platform, with Zonar’s advanced technologies and industry expertise, we are poised to create unparalleled value for our customers and further disrupt the market as two industry leaders in overall customer satisfaction.”
GPS Trackit, which backed by buyout firm Inverness Graham, provides cloud-based, IoT fleet solutions and GPS fleet tracking.
In the third quarter of 2024, Continental increased its earnings on the back of measures taken to improve earnings, particularly focused on cost reduction.
During the quarter, the company achieved consolidated sales of €9.8bn (Q3 2023: €10.2bn, -4.0%). Its adjusted operating result increased to €873m (Q3 2023: €642m, +36%), corresponding to an adjusted EBIT margin of 8.9% (Q3 2023: 6.3%).
Net income in the third quarter amounted to €486m (Q3 2023: €299m, +62.8%).
