The deal is subject to approval by Trakm8 shareholders at a meeting on 24 December.
The two companies will continue to operate independently, but Nadeem Raza, Microlise’s CEO, will join Trakm8’s board as a non-executive director.
Raza (pictured) said: “Microlise has ambitious growth plans both in our home market of the UK, but also internationally... While we both provide telematics services, Microlise and Trakm8 operate in different markets and serve different customer bases.
“We believe there are synergies between our two businesses, both of which are committed to providing best-in-class products and services, and innovating through product research and development.”
Microlise already has a significant international presence, with offices in France, the Middle East, India and Australia, along with a network of OEM and channel partners.
Trakm8’s headquarters are in Coleshill, near Birmingham, where it also manufactures its telematics, cameras and fleet management software products. The company has been listed on AIM since 2005.