@Road buys bankrupt firm

Asset tracking system developer @Road is buying bankrupt telematics provider MobileAria for $11.4 million and the assumption of its debts.

Some 71% of MobileAria is owned by Delphi Automotive Systems and, if all goes well, @Road said it expects to wrap up the sale by the end of July.

The purchase is part of @Road’s expansion strategy to substantially build its subscriber base this year.

Though @Road lost $2.7 million in the first quarter this year, its total revenues for the period increased 24% to $24.7 million compared to the first quarter of 2005. The company also has roughly $100.2 million worth of cash and cash equivalents on hand to fuel its growth plans, said Krish Panu, president & CEO of @Road.