Michelin acquires telematics provider NexTraq
The fleet management package Michelin offers in North America is set to benefit from the company’s acquisition of NexTraq, a US provider of commercial fleet telematics. Yesterday the tyre maker reported its purchase of the Fleetcor Technologies subsidiary in an all-cash transaction.
NexTraq provides solutions for driver safety, fuel management and enhancing fleet productivity. Since its inception in 2000, NexTraq has become a leading provider of GPS fleet management solutions for fleets of small commercial vehicles (classes 3‒5) ranging from two to 50 vehicles.
“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans,” said Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America. “NexTraq represents a strategic acquisition that accelerates our growth in telematics with synergies that increase our scale, expand our geographic footprint and strengthen overall competitiveness in fleet management technology and services in the United States.”
“While we were able to grow NexTraq’s operating income nearly 400 per cent since we acquired the business and to generate a strong return for our shareholders, our decision to divest NexTraq centred on the conclusion that there is insufficient synergy with our core payments business to stay invested in the space,” said Ron Clarke, chairman and chief executive officer of Fleetcor. “We would especially like to thank the NexTraq management team for their hard work and success in building a market-leading telematics business.”
NexTraq has 117 employees, approximately 7,000 fleet customers and 116,000 individual subscribers. The unit will operate independently within Michelin North America.
“NexTraq has technology that, among other capabilities, monitors reckless driving and stops texting while driving. This capability is an excellent cultural fit with Michelin’s purpose and long-standing commitment to road safety,” Dimenna added.
The closing of the acquisition is subject to completion of certain customary conditions, including clearance under the Hart-Scott-Rodino Act.