JLT Mobile Computers makes strategic acquisition – becomes a shareholder in its Australian sales partner
JLT has acquired 33% of the shares in Control Synergy, JLT's distributor in Australia for the past twenty years, thereby creating new expansion opportunities in the Australian market.
Växjö, Sweden, 26 May 2023 * * * JLT Mobile Computers, a leading supplier of rugged computers for demanding environments, has acquired 33% of the shares in its Australian sales partner, Control Synergy, with the option to acquire the remaining shares in the company in five years.
Key highlights of the acquisition
- Creates expansion opportunities in Australia, and long term also in the rest of the APAC region
- Raises the service level in the Australian market
- Increases knowledge exchange to drive growth
- Enhances possibilities for customer-centric product and service development
New expansion opportunities and raised service level
Over the past 20 years, Control Synergy has successfully built up the sales of JLT's products in Australia. The acquisition creates new expansion opportunities, particularly in the mining sector, as well as other segments such as transportation, warehousing, and ports, which align with JLT's core competencies and product range. Furthermore, the service level is raised by providing maintenance and repairs locally, initially for customers in Australia and New Zealand, and eventually for neighbouring countries within the APAC region.
"I was very excited when Control Synergy's management approached JLT about the opportunity to become a shareholder in the company," says Per Holmberg, CEO of JLT Mobile Computers. "The acquisition is fully in line with our long-term strategy of strengthening our position in target markets with untapped growth potential. I look very much forward to expanding our presence in the Australian market together with Control Synergy."
Increased knowledge exchange and possibilities for customer-centric product development
The acquisition enables increased knowledge exchange between the companies. Control Synergy can broaden its offering and leverage JLT's strong position and experience to increase penetration in new segments. At the same time, JLT gains greater insight into current and future user needs through Control Synergy's direct sales to end customers, which improves the possibilities for customer-centric product and service development, further strengthening competitiveness.
"Control Synergy has been pioneering the industrial vehicle computing markets in Australia for over 20 years and JLT Mobile Computers has always been our preferred platform," says Brett Aked, CEO of Control Synergy. "Our customers have appreciated the unique JLT combination of innovation, design and reliability and we are excited to move into the future with a much closer relationship between our two companies. With the strengthened partnership we are looking to expand our market position and become the rugged mobile computing provider of choice."
Background to the acquisition and financial details
The opportunity for the acquisition occurred when one of Control Synergy's three owners, David Croxford, decided to retire, and JLT was offered to become a shareholder. On May 25th, 2023, JLT acquired Croxford's stake, equivalent to 33% of the company's shares. The remaining shares are owned by Brett Aked, CEO, and Peter Fuller, Sales Manager, both of whom will continue in their current roles in the company.
The purchase price amounted to 400K AUD (approximately 2.8 MSEK) with resulting goodwill of over 1 MSEK. The purchase price was paid through a cash transaction, and no loans will be taken. As part of the acquisition, JLT has an option to acquire the remaining shares in the company in five years.
|Reader Enquiries JLT Mobile Computers Group
|Per Holmberg, CEO
|George Oguz, CFO
|Tel.: +46 70 361 3934
|Tel.: +46 73 410 7971
|Eminova Fondkommission AB
|Tel.: +46 08 684 211 10
|Tel.: +44 20 8133 6148
About JLT Mobile Computers
Reliable performance, less hassle. JLT Mobile Computers is a leading supplier of rugged mobile computing devices and solutions for demanding environments. Over 25 years of development and manufacturing experience have enabled us to set the standard in rugged computing, combining outstanding product quality with expert service, support and solutions to ensure trouble-free business operations for customers in warehousing, transportation, manufacturing, mining, ports, and agriculture. JLT operates globally from offices in Sweden and the US, complemented by an extensive network of sales partners in local markets. The company was founded in 1994, and the share has been listed on the Nasdaq First North Growth Market stock exchange since 2002 under the symbol JLT. Eminova Fondkommission AB acts as Certified Adviser. Learn more at www.jltmobile.com.
About Control Synergy
Control Synergy is a well-established Australian distributor with over 20 years of industry experience, specializing in rugged computer equipment and wireless data communication. They primarily operate within the mining, agricultural and defense sectors, but also serve the manufacturing, and automation industries. Control Synergy offer advise and the hardware products their customers need to build a variety of high-reliability mobile data networks that may consist of vehicle mount terminal platforms, custom coax and Antenna kits, as well as embedded storage and radio modems. Customers are primarily located in Australia and New Zealand. Their headquarters is located in Beresfield, NSW, Australia. For more information, please visit controlsynergy.com.au/.