Trak Global acquires Intelligent Mechatronic Systems out of receivership

BEST Funds disclosed that Trak Global Group Limited has completed the acquisition of substantially all the assets of Intelligent Mechatronic Systems Inc. (IMS) and its subsidiary Ridetones Inc., following the approval of the vesting and distribution order by the Ontario Superior Court of Justice.

On September 14, 2018, IMS was petitioned into receivership by senior secured creditors, various funds managed by BEST Funds. PricewaterhouseCoopers was appointed as receiver and manager.

As of September 14, 2018, Intelligent Mechatronic Systems owed $26.98 million to BEST Funds, $8.63 million to unsecured creditors and $34.18 million to various shareholders under shareholder loans.

The terms of the sale were not disclosed. Following the closing of the sale, BEST Funds will receive shares in Trak Global.

Tier One Capital Limited Partnership (CSE: TLP.UN), one of BEST Funds management fund, said the distribution of Trak Global shares will result in a decrease of approximately $0.64 per Tier One LP Unit (approximately $2.54 million in aggregate).

Despite the adjustment to the valuation of IMS and the impact on the total assets, Tier One is very optimistic that the synergies through the combination of IMS and Trak Global will result in an increase in the value of consideration shares in Trak Global going forward.

Waterloo, Ontario based Intelligent Mechatronic Systems Inc. is a leading connected car solutions provider delivering services and analytics to insurers, governments and enterprises.

Founded by Nick Corrie, Alan Cottrill and Kamran Mahmoudzadeh in 2009, Crewe, Cheshire, UK based Trak Global is a leading telematics solutions provider for the insurance, fleet, rental and automotive industries.

photo credit: IMS

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.