British cell phone operator Vodafone has announced that it is planning a voluntary takeover of Italian telematics company Cobra Automotive Technologies for EUR145m.
The planned takeover shores up Vodaphone’s strategic push to expand its presence in the high-growth area of connected vehicle technologies and associated services.
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Cobra had a reported net debt of EUR48m as at 31 March 2014.
Vodafone said it has entered into an agreement with the main shareholders of Cobra, who, together, hold 73.96% of the share capital of Cobra, on a fully diluted basis, to effect certain matters including agreeing to tender their shares into the offer. The share offer is expected to be launched in the coming weeks and will be made subject to the relevant provisions of Italian law, Vodaphone said.
Vodaphone said that the acquisition of Cobra is in line with Vodafone’s strategy to expand its machine-to-machine (“M2M”) capability beyond connectivity. Cobra’s telematics products and expertise will enable Vodafone to provide a more comprehensive range of end-to-end services to automotive customers.
Erik Brenneis, Director of M2M, Vodafone said: “The combination of Vodafone and Cobra will create a new global provider of connected car services. We plan to invest in the business to offer our automotive and insurance customers a full range of telematics services.”
