NavStar Technologies has announced a strategic relationship with Canada based Vortex Solution to provide the annuity-based services that the company has been seeking to complement its product offering.

 

Vortex is a full-service provider of Internet and Intranet services. The company claims to have the ability to fully leveraging the power and speed of the Internet to solve complex and business-critical problems.

 

“We decided to focus our attention on Vortex about three weeks ago when it became apparent that their monitoring/tracking software had been improved significantly over the past 12 months,” said N. Douglas Pritt, chairman and CEO at NavStar.

 

He said that Vortex has five or six software engineers that have successfully integrated NavStar’s hardware with their software and have sold several thousand NavStar units in Montreal under the brand name AVL Track.

 

“Their experience with our product will easily accelerate the software/hardware integration by 6 months and gives us a proven software platform which is already supporting thousands of users,” added Pritt.

 

The relationship with Vortex is expected to provide NavStar with software services revenue that is being renewed by customers annually for three to five years. NavStar believes that the annualized revenue provided by these software services will provide a “significant” boost to revenue and profitability.

 

NavStar has decided to establish a partnership with Vortex for their software platform, and “we have already had great success with their hardware working on our platform in both the US and Canada,” said Guy Michon, vice president at Vortex Solution.

 

He said that with 65 software engineers in place, the company can be “very responsive” to customer needs and the request for new services, adding that the markets on which NavStar is currently operating represent “new horizons” for the company.

 

Pritt confirmed that an LOI has been signed and that a final agreement will be completed in the next two weeks. This latest agreement includes a combination of stock, cash and a per user royalty payment.

 

NavStar is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and more.

 

Earlier in August, NavStar announced partnership with Anything Trucker, a transportation marketing unit of Anything Brands Online, to offer equipment, software and related services to trucking companies inside the U.S.