Telematics and logistics technology vendor Omnitracs LLC said today it has agreed to acquire the Canadian fleet-management solutions provider Shaw Tracking in a bid to tap further into the $650 billion market of goods crossing the U.S.-Canada border each year.
The merger expands Dallas-based Omnitracs' presence in Canada and will enable the company to help carriers prepare for coming transportation regulations in that country, such as requirements for electronic logging devices (ELDs), Omnitracs said.
Terms of the transaction were not disclosed. Subject to regulatory approval, the deal is expected to close this summer, when Omnitracs will purchase Shaw Tracking from its parent company, the internet and telephony provider Shaw Communications Inc.
Mississauga, Ontario-based Shaw Tracking will then be integrated into the Omnitracs portfolio. The two companies have had a tight relationship for decades, with Shaw Tracking having been the exclusive Canadian distributor of Omnitracs fleet management solutions for more than 25 years. Shaw also sells global positioning system (GPS) vehicle-tracking products, fleet management software, and professional services for additional support, Omnitracs said.
"The Canadian transportation market represents a significant and important opportunity for us," Mike Ham, general manager of Omnitracs, Canada, said in a release. "As the Canadian market changes and government regulations unfold, the transportation industry will face some unique challenges requiring fleets across the country to evolve with new technologies."
Omnitracs has been growing through acquisition in recent years, expanding its IT catalog by buying mobile fleet-optimization software provider XRS Corp. in 2014 and fleet-management software vendor Roadnet Technologies in 2013. The company has also moved into the autonomous trucking sector through a 2017 partnership with Peloton Technology, a developer of automated vehicle systems, such as truck "platooning" technology that allows pairs of trucks to enhance their aerodynamics and fuel efficiency by drafting off each other.
Gartner, Inc.