Irish B2B dealer Commercial Wireless has entered the UK market by purchasing
Cheltenham firm Tracktech for an undisclosed fee.
The deal will be structured on a ‘buy and earn out’ basis, which means a percentage of the purchase price is paid upfront, with the rest paid out over time based on the achievement of agreed revenue and profit targets.
Tracktech will continue to trade under its own name in the short term, but Commercial Wireless plans to establish a full operating subsidiary in the UK later this year.
Commercial Wireless chief executive Derek McDonald said it was Tracktech’s product and customer base made it an ideal business to acquire.
Said McDonald: “Tracktech’s business is very closely aligned with our own, but it also develops bespoke application software for its customers, which is a good add-on to our business.
“Purchasing Tracktech gives us a good opportunity to grow our business in the UK. We looked at a lot of businesses in the UK – in the north, in London – but Tracktech suited us best.
“It will be a good partnership as they have an in-depth knowledge of the industry. It also opens the door for future acquisitions in the UK.”
Commercial Wireless purchased fellow Irish firm Choice Communications in 2005. Last year it purchased the Irish division of repair centre A Novo, and was named O2 Business Dealer of the Year in Ireland.