Sistema Acquires 51% Stake in M2M Telematics
OREANDA-NEWS. July 19, 2010. Sistema (the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, today announced that it has acquired a 51% stake in OJSC M2M Telematics (“M2M Telematics”). Sistema plans to acquire a remaining 49% stake in the next two to five years in accordance with the agreement between the companies, reported the press-centre of Sistema.
Founded in 2005, M2M Telematics is the leader in the Russian market of transport monitoring, navigation and telematics based on GLONASS/GPS technologies. The company has a broad portfolio of products for multiple market segments which it sells through an extensive distribution network comprising 56 regional partners, to a large customer base.
Sergey Boev, Vice President and Head of the 'High Technologies and Industry' Business unit at Sistema, commented: “This acquisition will provide Sistema with additional expertise and know-how to assist the federal network operator OJSC Navigation Information Systems (NIS) in implementing a public-private partnership project to create a national traffic accidents emergency response system under the ERA GLONASS brand.”
OJSC NIS is owned by RTI Systems (25.5%), SITRONICS (25.5%) and Federal State Unitary Enterprise “Russian Institute of Space Device Engineering” (49%).