Telogis acquires DCS, prepares for consolidation

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Wednesday, April 1, 2009

IRVINE, Calif.--Telogis, a global platform for location-based services, on Feb. 9 announced it had acquired Darby Corporate Solutions’ GPS fleet tracking business. DCS is a wireless communication company based in Jericho, N.Y.

According to Telogis CEO Dave Cozzens, the acquisition will give Telogis a much broader reach as lines between different security verticals blur. “I think there’s a lot of consolidation going on in the market today across various people that are focused on different verticals,” Cozzens said. “They have some complementary customer segments that we weren’t in. It gives us quite a reach in different markets. Everybody approaches the market from a different entry point … but as any market would, as it matures, it’s consolidating.”

Cozzens said the coming convergence in the United States of different monitoring, tracking, management and security technologies, happening elsewhere in the world already, is inevitable. “In Brazil it’s been mandated that every bus, truck, car and motorcycle, starting in August of this year, will come out of the factory line with GPS receivers and wireless modems built into the vehicle,” Cozzens said. “I think you’re going to see a lot of that expertise outside the U.S. coming into the U.S.”

Cozzens said Telogis had already begun providing its technology and services to traditional security companies and looked forward to growing those relationships. “We love to have those guys sell our service. And you know what’s interesting as well, what we found down in Brazil, the real driver to do all this was security,” Cozzens said. “But now that they actually have the infrastructure built, their customers want to use it to drive things like productivity, hard-braking, fuel savings … You can sell the original solution, make the business case around security, but there’s so much more in terms of services that you can provide.”