Michelin buys into US fleet telematics
- Written by Pat Sweet
- Published: 04 July 2017
- Created: 04 July 2017
French tire giant Michelin has bought NexTraq, a US provider of commercial fleet telematics, in an all-cash transaction for an undisclosed amount.
Based in the Atlanta area, NexTraq is a subsidiary of Fleetcor Technologies, a leading global provider of fuel cards and workforce payment products.
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.
Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America, said: “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 US.”
Ron Clarke, chairman and chief executive officer of Fleetcor, said: “While we were able to grow NexTraq’s operating income nearly 400% 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.”
NexTraq has 117 employees, approximately 7,000 fleet customers and 116,000 individual subscribers. The unit will operate independently within Michelin North America.
Dimenna added: “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,"