Trakm8 is set to undergo a reverse takeover involving BOX Telematics, following the necessary shareholder approval.

The GPRS-based hardware and software designer and developer, which has a focus on the vehicle placement and security market, is purchasing a provider of fleet management systems.

The deal is being funded using a combination of cash reserves, a new debt facility and subscription of new shares raising £720,000.

John Watkins, CEO of Trakm8, comments, ‘The acquisition of BOX is a significant milestone for Trakm8 bringing strong financial and strategic benefits as it will enable us to exploit the growing demand for vehicle telematics in a fragmented market place.

‘We have been delighted by the positive reaction to acquire this profitable and complementary business and furthermore are pleased to welcome a number of high quality institutions to our share register.’

According to a statement, the acquisition, and subsequent reverse takeover, of BOX Telematics will provide an increased installed base of customers, new routes to market and access to manufacturing and assembly facilities.

To charge itself with extra working capital, Trakm8 has also lined up a placing and subscription to raise £1.35 million.