NEW DELHI: French Tyre manufacturer
today announced its plan to acquire
, a U.S provider of commercial fleet
, in an all-cash transaction. The Atlanta based Nextraq is a subsidiary of
Technologies which deals in fuel cars and workforce payment products.
NexTraq deals in providing 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 2 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. 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.” said Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America.
“While we were able to grow NexTraq’s operating income nearly 400 percent since we acquired the business and to generate a strong return for our shareholders, our decision to divest NexTraq centered on the conclusion that there is insufficient synergy with our core payments business to stay invested in the space. We would especially like to thank the NexTraq management team for their hard work and success in building a market-leading telematics business.”” said Ron Clarke, chairman and chief executive officer of FLEETCOR.
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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 said.
The closing of the acquisition is subject to completion of certain customary conditions, including clearance under the Hart-Scott-Rodino Act.