Andile Ngcaba’s specialist ICT investment firm Convergence Partners has entered into an agreement with Nasdaq-listed Inseego to acquire 100% of Ctrack’s operations in Africa and the Middle East.
In a statement, Convergence Partners says this will be the maiden investment for its third fund, Convergence Partners Digital Infrastructure Fund (CPDIF).
The agreement is subject to customary conditions, including approval by the Competition Commission of South Africa.
The acquisition comes two months after Convergence Partners announced R76 million ($5 million) further funding for its stake in fintech firm ChannelVAS.
In December last year, the company said it exercised preferential and exclusive rights to acquire the stake as a result of an intra-consortium rebalancing of the holdings of another member of the Ethos consortium through which Convergence Partners is partially invested.
Ctrack is a telematics software-as-a-service digital infrastructure platform providing fleet management, insurance and weather telematic solutions and asset tracking solutions to its subscribers in Africa and the Middle East.
Convergence Partners says Ctrack’s Internet of things and data analytics capabilities are a key component of an emerging sector in Africa and are a good fit with CPDIF’s strategy of identifying high-growth market players that build digital infrastructure on the continent.
Says Ngcaba, chairman of Convergence Partners: “Our interest in the business relates to its proven market leadership in the development of analytics solutions using big data extracted from the cloud platform.
“We believe the business is well poised to use its market advantage to further its ambitions in the automotive technology space by continuing to develop its Internet of things and artificial intelligence competencies.”
He adds that as the world enters automotive ethernet, Ctrack is well positioned for vehicular communication systems such as V2V and V2X connectivity, and the business will subscribe to 5GAA protocols in the 5.9GHz band.
“We thus believe that our ownership of Ctrack will serve as a catalyst to enhance and accelerate its digital ambitions further,” Ngcaba concludes.
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