Russia’s largest public difersified financial corporation, Sistema has acquired a 51% stake in transport telematics service provider M2M Telematics, the company announced. According to newspaper Vedomosti, Sistema paid $20 million for the stake.
Sistema plans to acquire the remaining 49% stake in M2M Telematics in the next two to five years.
Founded in 2005, M2M Telematics provides transport monitoring, navigation and telematics services based on GLONASS and GPS technologies. The company holds 9% of the Russian telematics market valued at over 900 million Rubles in 2009.
Sistema‘s portfolio companies RTI Systems and Sitronics together own a 51% stake in Navigation Information Systems (NIS) that implements a public-private partnership project to create a national traffic accidents emergency response system under the ERA GLONASS brand.
In July 2010, the leading Russian telematics company Russian Navigation Technologies that develops and markets the AutoTracker system for transport monitoring was valued $54 million at IPO on MICEX Stock Exchange.