One of our first major purchases that ushers us into adulthood is a car. Whether purchased with a loan or leased, one’s first car, and any one after that, is a symbol of independence. However, protecting that investment is just as important as putting gas in the tank. The two most common ways to protect a car is through purchasing insurance and installing a recovery system. LoJack Corporation (LOJN), a leading provider of tracking and recovery systems, as well as equipment and fleet telematics, plans to extend their reach with a landmark partnership.
Providing safety, security and protection for an ever-growing range of valuable assets and people, LoJack has helped more than nine million people protect their vehicles in the event of theft for over 25 years.
Earlier this month, LoJack announced entering into a definitive agreement with CalAmp Corp. (CAMP), a proven leader in providing wireless communications solutions to a broad array of vertical market applications and customers. According to the agreement, CalAmp will acquire all of the outstanding shares of common stock of LoJack for $6.45 per share in an all cash transaction valued at approximately $134 million.
"The acquisition of LoJack aligns with our strategy to deliver innovative, next generation connected vehicle telematics technologies, thereby accelerating our roadmap in these large and fast growing markets, while creating value for our customers, partners and shareholders," said Michael Burdiek, President and CEO of CalAmp. By combining with LoJack, we expect to enhance our ability to deliver novel connected vehicle telematics technologies and applications to our global customers.
Furthermore, LoJack has announced a number of positive developments in recent months, including:
- Reporting net income of $1.5 million and cash flow from operations of $6.9 million for the third quarter of 2015.
- Releasing tips for vehicle owners in order to protect valuable assets and promote safety during the winter season.
- Last November, reporting highest quarterly pre-install volume in LoJack history.
CalAmp's wholly-owned subsidiary, Lexus Acquisition Sub, Inc. commenced a cash tender offer to purchase all outstanding shares of LoJack on February 16, 2016.
After over two decades of providing customers and clients with vehicle loss prevention solutions, LoJack aims to take their business to the next level. This landmark partnership, along with both companies renowned products and services, LoJack is positioned for continued growth.
“With CalAmp as our partner, the LoJack brand will continue to expand beyond our foundational stolen vehicle recovery business by providing our customers and partners with enhanced product offerings to better protect and manage their assets,” said Randy Ortiz, LoJack's President and Chief Executive Officer.. “We look forward to working with the CalAmp team to ensure a smooth transition and accelerate the strategic initiatives already underway at LoJack as we take our great brand into the future."
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