Summer 2006

In what could be a sign of the consolidation that has been widely predicted in the tracking and telematics market, Cybit has acquired fellow-UK supplier Bluefinger for £1.62 million, which includes half a million pounds of debt. It gains annual service-based revenues estimated at £750,000.

Bluefinger was created following a management buy-out of the maritime telematics business of Thales Tracs, and has retained a strong presence in the maritime tracking market. Indeed, it is said to have a remarkable 30 per cent share of available contracts in its target sector.

However, it has also expanded strongly into vehicle tracking, and is said to have approximately 200 customers covering a vehicle base of some 3,700. It had established an alternative identity in this sector under the name GreatBigBlue, complete with its own Web site.

Cybit says it sees significant synergies with the company, and clearly the maritime presence takes it into a previously untapped market. The company says the increased focus on coastal security around the world has created an expanding marketplace with high barriers to entry "and commensurately attractive margin levels".

 

According to chief executive Richard Horseman, it is an area "where we see new and exciting opportunities."

In the year to 31 July 2005 Bluefinger reported turnover of £3.3 million, the same as the year before, though gross profit was down from £121,000 to £36,000. Back in November, managing director Steve Jones was describing the market as a whole as "very difficult at the moment", though he said this presented new opportunities for the company.