Coretex merger complete; Milford invests $6 million
October 30, 2015
Auckland, New Zealand, 30 October 2015 – Leading fleet management technology companies International Telematics Holdings Limited (ITHL) and Imarda Pty Ltd, have formally merged to form Coretex Ltd. Following the merger, Milford Active Growth Fund has invested NZD $6 million in Coretex and will invest up to a total of NZD $10 million.
Selwyn Pellett, CEO of Coretex, (previously Imarda’s founder and CEO), says that both companies have been experiencing strong growth in North America, Australia and New Zealand, with a number of recent strategic wins. Pellett says the investment by the Milford Active Growth Fund will help Coretex quickly scale to take advantage of market opportunities.
“This merger creates a strong company positioned to maintain its high growth. 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,” says Pellett.
The Milford Active Growth Fund has been working with both organisations for over 12 months and is delighted to support Coretex to accelerate its overseas growth.
“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. Coretex will have the scale, products and expertise to deliver these outcomes and win in the global market,” says Brooke Bone, Portfolio Manager at Milford Asset Management.
Pellett says Coretex has strong customer bases and revenue streams in both local and international markets.
“Over 72% of our total sales come from outside of New Zealand, of which 45% is generated from North American markets. The merger brings together the Imarda and ITHL sales geographies, channels, technical capabilities and vertical markets,” says Pellett.