The Continental Corporation has acquired a majority stake in Zonar Systems, a company specializing in fleet management solutions for commercial vehicles.
The terms of the deal were not disclosed but with a majority stake, Continental will be able to expand its fleet management business presence in the U.S. market. The purchase contract gives Continental an 81% stake in Zonar leaving Daimler to retain its existing 19% share.
The transaction required a vote of Zonar shareholders and the deal is subject to approval from the U.S. Federal Trade Commission and the Department of Justice. The acquisition is expected to be completed by the fourth quarter of 2016.
“With this move, we are further expanding our portfolio and expertise in the arena of mobility services, and fostering our regional balance by investing into a fleet management provider in the US that gives us access to a broad customer base and existing sales channels”, said Helmut Matschi, president of the interior division and member of the executive board of Continental.
Zonar was started in 2001, providing fleet telematics across commercial trucking, vocational and passenger fleets. Zonar offers an electronic verified inspection reporting system to ensure pre- and post-trip inspection compliance as well as mobile ELD solutions. It is also the OEM partner for Daimler Trucks North America’s Virtual Technician solution.
“Through the integration of new smart technology solutions, we can enhance our existing fleet management services,” said Michael Ruf, head of the commercial vehicle & aftermarket business unit at Continental. “In addition, with regard to remote diagnostics for commercial vehicles, we can broaden our existing Continental diagnostics capabilities through new backend services.”