Sunnyvale, California, USA, 10 December 2006 – Trimble has announced that it has entered into a definitive agreement to acquire @Road, Inc. of Fremont, California. The acquisition would enable Trimble to gain leadership in Mobile Resource Management (MRM).
The acquisition expands Trimble’s investment and reinforces the existing growth strategy for its Mobile Solutions (TMS) segment. It also positions Trimble as a market leader in providing MRM solutions.
In addition to its industry-leading technology, @Road has developed deep domain expertise and a strong field service management capability within its MRM solution set to address challenges faced by a variety of industries, including transportation, distribution, telecommunications, cable, field service, utilities, facilities management and public works. This complements Trimble’s existing domain expertise in the construction supply, direct store delivery, public safety and utilities industries.
The acquisition would also increase Trimble’s access to global MRM segment. According to Frost and Sullivan, the emerging MRM segment is expected to grow to approximately $2.6 billion by 2010, up from approximately $1.2 billion in 2006. With the acquisition of @Road, Trimble is well positioned to capitalize on this growing, global market opportunity.
“@Road is widely recognized for its strong technology base and its success with enterprise customers. The addition of @Road to Trimble’s existing TMS product offerings will enable us to provide a broader and more robust platform,” said Steven W. Berglund, President and CEO of Trimble.
“The anticipated growth rates for MRM make this combination an attractive addition to the Trimble portfolio. It reinforces our other successful investments within TMS and represents a major step in building leadership in MRM. We look forward to the addition of the @Road team as we continue to grow and build shareholder value.”
The move will further extend Trimble’s technology platform and accelerate the pace of product innovation for customers. @Road has made significant investments in world-class, fault tolerant and scalable software infrastructure that can support a large increase in subscribers with minimal additional investment. This enables Trimble to forego a similar investment and rapidly deploy new applications to serve additional customers.
Under the terms of the transaction, Trimble will acquire all of the outstanding shares of @Road for $7.50 per share. @Road shareholders will receive $5.00 per share in cash and the remaining $2.50 per share in consideration will be a mixture of cash and/or Trimble stock to be determined at Trimble’s sole discretion.
The transaction equity value is approximately $496 million. After subtracting @Road’s net cash position of approximately $79 million, the transaction enterprise value is $417 million. The transaction will be accounted for as a purchase.
– About @Road
@Road, Inc. is a provider of solutions designed to automate the management of mobile resources and to optimize the service delivery process for customers across a variety of industries. @Road delivers Mobile Resource Management solutions in three key areas: Field Force Management, Field Service Management and Field Asset Management.
By providing real-time Mobile Resource Management infrastructure integrating wireless communications, location-based technologies, transaction processing and the Internet, @Road solutions are designed to provide a secure, scalable, upgradeable, enterprise-class platform, and are offered in on-demand software delivery, on-premise or hybrid environments that can seamlessly connect mobile workers in the field to real-time corporate data.
@Road is headquartered in Fremont, California, and has a global presence with offices in North America, Europe and Asia. For more information on @Road solutions, visit www.road.com.