CalAmp signs $25M contract
Oxnard-based wireless products maker CalAmp Corp. has signed a $25 million contract with Navman Wireless for fleet-tracking products.
CalAmp said May 7 that under the five-year deal, it has purchased several products and technologies from Navman and set up a research and development center in New Zealand that is staffed by 14 employees brought over from Navman. CalAmp will pay $6 million to Navman.
CalAmp said it expects the supply agreement to generate revenues of at least $5 million per year over five years – making it an “essentially breakeven” proposition on a GAAP accounting basis for its 2013 fiscal year and accretive to earnings after that.
CalAmp said the deal expands its footprint in Asia, Western Europe and South America, where Navman has a large customer base.[wikichart align=”center” ticker=”CAMP” showannotations=”true” livequote=”true” startdate=”08-11-2011″ enddate=”08-05-2012″ width=”390″ height=”245″]