I'm not sure Eroad would have an interest in CXZ, the reason...

I'm not sure Eroad would have an interest in CXZ, the reason being while they are both in the growth segment of telematics, they are on very different business paths. Eroad tend to focus on fleet management for the freight and logistics industries, which in a regulatory environment requires a lot of hardware that is provided by Eroad for compliance purposes. The SaaS solutions are strongly tailored to this freight and logistics environment. I believe Eroad growth relies around simpler and better tech solutions for obtaining telematic data and being a front runner for government regulations (such as electronic work diaries, being a front runner to provide telematics to support road pricing reform (imagine every truck in the country running on an Eroad GPS device), chain of responsibility compliance, expansion of heavy vehicle accreditation schemes to address telematics within the industry etc). The regulatory environment the freight and logistics sector is required to abide by is extremely onerous and technology plays an important role in ensuring compliance (the penalties are big and breaches follow a chain of responsibility all the way up to company directors). Eroad is well positioned to strengthen its position in the freight and logistics industry (especially overseas), and while it may get some passive revenue from light vehicle fleets, I don't think they will chase that too hard, they will continue follow their strength in a growing international market. Disclosure, I took some Eroad under placement for this reason, but a very different investment hypothesis to CXZ.

CXZ on the other hand, doesn't offer hardware solutions that source data and requires that hardware component to obtain data, ie. the OnTrac system is embedded into the GM OnStar network to obtain its data. The long term value proposition around CXZ is growth within being an embedded solution that is built to compliment existing hardware. This will become more important over time as the connectivity of vehicles increases, and more OEMs provide their own data from in-built hardware. Another growth component of this is the increase and future expansion of Intelligent Transport Systems, where more data than ever will be available for such onboard systems (ie. imagine your car telling you through connected telematic data where the spare parking spot is). Also, the monetization potential of car and vehicle data and analytics for commercial and traffic management purposes is huge.

For CXZ to play in this space long term I do believe 2 things need to happen though.
1 - continued work with GM or another car manufacturer to keep a 'foot in the door'. The value of the extension is immaterial long term, its the value of being exposed via GM to the future of the growing market that matters.
2 - the appointment of a CEO who understands the industry, has the appropriate reputation, right contacts and resides where cars are actually made. Relationships are critical, and CXZ needs to be well placed to have the exposure necessary to be included on the major developments in this space. If not, they will be operating on the fringes.