– By Caroline Falls –
In November one of Australia’s leading telematics brands – MTData – was acquired by telecommunications giant Telstra for an undisclosed amount.
A Telstra spokesman said the price was “commercial in confidence”. However, the Australian Financial Review reported earlier this year that MTData was being pitched by Ernst & Young for between $50 million and $100 million.
MTData was ranked Australia’s second top telematics brand, after Navman, by market intelligence group ACA Research in a 2015 report. That report showed seven brands, also including TomTom, IVMS, Volvo, Ctrack and Mix, held some 65 percent of the Australian market for telematics.
Telstra Chief Financial Officer Warwick Bray told investors last week that the acquisition of MTData “will provide Telstra with the technical capability and software expertise necessary to help fast track our Enterprise Connected Vehicles offering as part of our growing business in this area in Australia and internationally.”
Telstra’s so-called Enterprise Connected Vehicle is among Internet of Things (IoT) solutions that the telecommunications group is expanding into. Others include asset tracking and location insights in the utilities, resources and agriculture industries.
MTData’s CEO Matthew Bellizia was a co-founder of the company in 2003. The group’s website says MTData has 95 percent of the Australian taxi tracking and dispatch market. It is also a big name in Australia’s heavy transport sector. It is headquartered in Sydney and has offices in the UK, US, NZ, Canada and the Middle East. Deloitte’s named MTData three years running on its Technology Fast 50 List in 2009, 2010 and 2011.
“MTData is a recognised leader in IoT and we look forward to taking this technology to our customers locally and internationally,” said Michelle Bendschneider, Telstra’s executive director of global products.
“This strategic acquisition will enable us to capitalise on the business ready IoT capability on our network, deliver IoT solutions to our customers in the heavy vehicle industry and supports a natural transition towards future autonomous vehicle technologies,” she said.
Bellizia said in a press release that maintaining the company’s passion for innovation and creating the right solutions for customers was a core consideration when choosing the right buyer for the company.
“Telstra is the right partner for MTData. There are strong synergies with our technology and customer focused cultures and through our integration we will provide customers with access to new and existing technologies like Telstra’s IoT offerings,” said Bellizia.
MTData’s wholly owned subsidiary Transport Compliance Services is among a handful of providers of devices and apps that have been approved and certified by Transport Certification Australia. TCA certifies equipment that can be used by heavy vehicles around Australia to join the Intelligent Access Program, which authorises those vehicles to use restricted roads in exchange for vehicle and load information provided to regulators via satellite from the vehicle.
“Transport Compliance Services has confirmed to TCA that approved devices already installed in vehicles, together with certified apps administered through the National Telematics Framework, will continue to be supported,” said Gavin Hill, acting CEO of TCA. “Importantly, for industry and government users that rely on certified apps provided by TCS, established operating arrangements will not be impacted.”
