Geo-Net Telematics, a start-up firm that specialises in selling global positioning satellite (GPS) systems, will open an office in Dublin next month following a new deal signed with Derry-based technology firm Andronics.

The Glasgow-based firm will become a distributor for Andronics's LEOCATE fleet management and vehicle location system in the Republic and Great Britain. It will establish an office in Dublin to target haulage firms, local authorities and other businesses for sales.

Under the terms of the deal, Geo-Net has committed to selling about 10,000 systems over the next few years, making the deal worth a potential €9 million.

Andronics's fleet management system enables companies to locate their vehicles when they are out on the road. It also has added features such as theft protection and a temperature-monitoring system.

The system is available on the internet and is based on global positioning satellites and a constellation of small low-earth orbit satellites to communicate a vehicle's position from any global location.

It has been used by firms for high-security tracking of containers of alcohol from London to Kazakhstan, and fishing fleets in Canada and Bermuda.

Andronics, which was formed in 1996 by Derry-based entrepreneur Mr Robert Andrews, also uses this type of satellite system to monitor oil tanks and water reservoirs in Britain and the Republic.

The deal with Geo-Net Telematics is intended to enable Andronics to target more effectively the potentially lucrative vehicle-tracking market.

Mr Peter Smith, senior account manager at Geo-Net Telematics, said the firm had decided to focus exclusively on selling Andronics GPS system in Britain and the Republic. A prior deal signed with another British-based GPS firm would not be continued, he said.

He said the firm would initially recruit two sales staff in Dublin and two in Belfast. This would increase with sales to cover other industrial centres such as Cork.

The partnership agreement will enable Andronics to concentrate solely on its technology, while Geo-Net Telematics will focus exclusively on marketing.

Geo-Net Telematics was founded in 2001 by a team of three directors. Two of these directors worked with a large British telematics company and one was in telecommunications. Based in Glasgow, it employs 14 staff.

Over the last year, Geo-Net has been marketing, distributing and installing a GSM-based fleet management system. It then chose to focus on a full satellite and internet-based system over GSM systems, and so approached Andronics.