XATA Corp. has signed a definitive agreement to acquire GeoLogic Solutions Inc. for approximately $17.5 million. Consideration for the transaction will be paid in approximately 87 percent cash, 11 percent in notes of XATA
and 2 percent in XATA common stock at the time the transaction closes.
The transaction is expected to close in the first calendar quarter of 2008 and closing is subject to certain closing conditions.
Based in Herndon, Va., GeoLogic provides the commercial trucking industry with wireless asset management solutions that reduce operational costs while increasing overall efficiency. Its mobile communications and tracking system, MobileMax, is installed on hundreds of fleets, representing more than 35,000 trucks, across the U.S. GeoLogic is also a Mobile Virtual Network Operator and provides third-party wireless data services through its CrossBridge Solutions platform.
"The acquisition of GeoLogic, when completed, opens the door to new software subscribers in the for-hire segment of the trucking industry. Combined with our expertise in the private fleet segment, this acquisition will provide a platform for significant growth within the over-the-road transportation sector," said Jay Coughlan, XATA chairman and CEO. "The combination of our two companies will broaden XATA's footprint in the market and further leverage GeoLogic's technology and professional staff."