CalAmp (NASDAQ:CAMP) announced that it has formalized and expanded an existing supply agreement with Masternaut, Europe's leading mobile resource management ("MRM") services company. It's been one and a half years since CalAmp is supplying wireless telematics devices to Masternaut for deploying throughout Europe. The expanded agreement will allow CalAmp to supply Masternaut advanced telematics devices to enable trailer, heavy equipment and industrial machinery tracking with Masternaut's Connect telematics platform.
Masternaut is Europe's largest provider of telematics solutions that provides a SaaS-based MRM application suite for businesses of all sizes. Martin Hiscox, chairman and CEO of Masternaut, said, "As Europe's largest MRM Services Company, Masternaut will expand its offering by leveraging CalAmp's devices, which are expected to play an increasingly critical role in assuring the reliable delivery of telematics data and services to our expanding customer base." Greg Gower, senior vice president and general manager of CalAmp's MRM business, said, "CalAmp's broad product offerings provide the reliability and functionality vital for these telematics services, which have made us a trusted supplier for these burgeoning markets."
Earlier I said that CalAmp's revenue would grow at a CAGR of at least 20% in Usage-Based Insurance ("UBI") market over the next three years, driven primarily by international sales in the fleet telematics market, particularly in Europe. I believe that Masternaut continues to be an important partner for CalAmp in Europe, where the company has huge room for growth in the coming months and years. Given that Europe has the capacity to generate $66.7 billion in premiums by the end of the decade, I believe that CalAmp's next round of growth will come from Europe, as I said in my original analysis.
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