CalAmp to buy AirIQ division
One of our portfolio companies, Air IQ (IQ:TSX), just announced that it had sold its vehicle finance division to California-based CalAmp (CAMP:NASDAQ) for US$19 million (about C$22 million) in cash. Compare that purchase price to Air IQ’s ~C$24 million market cap as of the close yesterday.
Here is the Reuters story:
“CalAmp to buy AirIQ vehicle finance division for $19 mln
Wireless products provider CalAmp Corp. (CAMP.O: Quote, Profile , Research) said it agreed to acquire the vehicle finance division of AirIQ Inc. (IQ.TO: Quote, Profile , Research), a wireless security company, for about $19 million to expand its mobile resource management business. CalAmp said it expects to employ about 35 former AirIQ employees, and will operate the acquired business from its existing facility in Lake Forest, California. The deal is expected to add to CalAmp’s earnings after excluding amortization of intangible assets arising from the acquisition, it said in a statement.”
Here is a link to some rating info on CalAmp. At last count, Air IQ was covered by GMP Securities and Clarus Securities. Disclosure: we hold warrants in IQ