Norcross, Georgia – Michelin North America has agreed to acquire NexTraq, a US provider of commercial fleet telematics, in an all-cash transaction.
Atlanta-based NexTraq is a subsidiary of Fleetcor Technologies Inc., a provider of fuel cards and workforce payment products. Financial terms were not disclosed.
NexTraq provides solutions for driver safety, fuel management and enhancing fleet productivity, the tire maker said, as well as GPS fleet management solutions for fleets of small commercial vehicles, 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, COO 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% 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," said Ron Clarke, Fleetcor's chairman and CEO.
NexTraq has 117 employees, about 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.
