MiX Telematics stealing a march on Altech?

MiX Telematics, a JSE-listed provider of fleet management, driver safety and vehicle tracking solutions, has opened up a new office in Sao Paulo, Brazil.

The group said it aims to increase its market penetration and grow its market share in Brazil and the greater Latin America region.

MiX rival, Altech, through its vehicle tracking and recovery subsidiary Altech Netstar, has for some time courted Brazil and other territories in Latin America.

Altech CEO, Craig Venter has on many occasions over the past few years said that the company was in talks over the potential acquisition of an offshore business in Latin America which would make Netstar the biggest company in its industry in the world.

However, those talks have stalled as the group looked to focus on offloading its troubled East and West Africa operations.

In April, speaking at Altech’s results presentation for the year ended February 2013, Venter said that the group would let the dust settle over the next six to 12 months regarding potential acquisitions. He said that, following a “bad experience”, the group would be cautious.

Altron, the parent company of Altech, recently made an offer to acquire the entire issued ordinary share capital of Altech, which was widely expected by the market following a poor run of results from Altech.

“While we already have successful channel partner representation and customers in the region, we acknowledge the importance of having feet on the ground to service the specific requirements of the local market,” said Charles Tasker, head of fleet Solutions at MiX Telematics.

“By working from within the same dynamic environments in which our partners and customers are functioning, we will be able to respond to the market’s unique demands more effectively.”

MiX Telematics has appointed a new regional MD, Luiz Munhoz, who joins the company after leading Continental Automotive in Brazil for 15 years.

“Considering the experience of MiX Telematics in similar emerging markets – such as in South Africa – as well as the fact that Brazil has the fourth-largest vehicle market in the world, our focus is on extending solutions to customers in the transport and logistics industry,” Munhoz said.

“In Brazil, road transport accounts for more than 70% of the entire transported load volumes, so there are literally thousands of customers in need of reliable tools that will help them run more efficient and more secure operations,” he said.

More on Altech and MiX

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Altech suffers heavy losses

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MiX Telematics stealing a march on Altech?