Opus Group to start vehicle inspection program in Córdoba, Argentina on March 1, 2017
Opus will acquire three vehicle inspection concessions in Córdoba, Argentina, under an asset purchase agreement with Inspecentro, a Portuguese vehicle inspection company. A purchase price is not disclosed at this time due to competitive reasons. The transaction is expected to be closed by end of February 2017.
The government of Córdoba assigned its three concessions for vehicle inspection in Córdoba to Opus’ Argentinian subsidiary, Opus Inspection SA. Starting March 1, 2017, Opus will perform vehicle inspection mandated for all vehicles registered in Córdoba. The concessions include the operation of 18 inspection lanes in three government owned inspection stations. During the first six months of operation, Opus will upgrade existing technology in inspection stations with its advanced data management system and vehicle inspection software. The City of Córdoba is committed to enforce the vehicle inspection mandate, in partnership with Opus, by utilizing Opus’ proprietary RFID technology. As a result, we expect to significantly increase vehicle inspection compliance in Cordoba during the contract term.
Mr Martin Susbielles, General Manager of Opus Argentina stated: “I am excited to bring Opus’ world class technology solutions and operational excellence to Córdoba. We are looking forward to working with the government of Córdoba to make this program a success for the citizens of this great city”.
“Our operation has worked hard to prepare for the transition of the inspection operations to Opus. I am excited to see Opus expand into Argentina”, stated Alfredo Granai, Opus’ President of Vehicle Inspection Latin America.
Córdoba is Argentina’s second largest city by population, and has a fleet of well over 500,000 vehicles. The new operation in Córdoba continues Opus’ business growth in Latin America. Adding to vehicle inspection programs in Chile and Perú, Opus’ commitment to the Latin American market is expected to strengthen under the leadership of Mr. Alfredo Granai.
The remaining contract length of the vehicle inspection program in Córdoba is seven years, not including any extensions. The exact contract value is uncertain at this time and will be reported at a later date.
Mölndal, February 20, 2017
Opus Group AB (publ)
For additional information, please contact
Magnus Greko
President and CEO
Phone: 46 31 748 34 00
E-mail: magnus.greko@opus.se
Peter Stenström
Investor Relations
Phone: 46 765 25 84 93
E-mail: peter.stenstrom@opus.se
Opus Group is a leading innovative technology focused growth company in the vehicle inspection market. The company has a strong focus on customer service and innovative technology within IT, emission testing and vehicle communication. The Group had SEK 1,697 million in revenues in 2016 with strong operating cash flow and good operating profitability. With over 1,600 employees, Opus Group is headquartered in Mölndal in the Gothenburg region of Sweden and has 25 regional offices, 20 in the United States and the others in Stockholm, Peru, Chile, Mexico and Pakistan. Opus Group has production facilities in the U.S. in Hartford and Ann Arbor. The Opus Group share is listed on Nasdaq Stockholm.