AirIQ Inc. has signed a definitive agreement to acquire the business of Aircept.com, LLC, based in Irvine, California. The acquisition will be conducted through the Company’s wholly owned subsidiary AirIQ U.S., Inc. (“AirIQ USA”) in an asset purchase transaction.
Aircept is a strong contributor to the Telematics service industry, says AirIQ, with over 80,000 active subscribers.
The integration strategy involves optimized subscriber acquisition across North America, combined purchasing power and a unified product and service development plan. These steps are expected to accelerate business model economics through faster revenue acquisition, but with less expense than that of two independent companies, thereby resulting in incremental cash generation, say the companies.
“Such highly compatible business models make this an ideal combination,” explains Don Simmonds, President and CEO of AirIQ. “It also signals our intent to lead a consolidation of the Telematics service industry.”
“The Aircept team has succeeded in its quest to build a company that is a dominant provider of core location-based services, and we believe the time has come to join forces with AirIQ, highly respected in our industry,” said Ken Wiesner, President and CEO of Aircept. “Our team is excited to work shoulder to shoulder with AirIQ to increase our combined market effectiveness as Telematics hardware and service providers.”
Wiesner will become the President of the new Aircept Division of AirIQ USA.
AirIQ USA intends to hire all 43 California-based Aircept team members. Working with the Toronto, Canada-based AirIQ team of 62, the combined operations will expand AirIQ’s North American presence, noting that Aircept has been successfully growing revenues from Mexico, in addition to the United States.
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