Vector Capital's Acquisition to Galvanize Fleet Management Market

By Mini Swamy

TMCnet Contributor

 

Trafficmaster, a leading provider of intelligent vehicle services, has been acquired by Vector Capital, global private equity firm specializing in the technology sector., in a take-private transaction valued at approximately $145 million.

 

While Trafficmaster was previously listed on the London Stock Exchange, 70 percent of the Company's revenue was generated by its significant operations in the U.S. principally through Trafficmaster's award winning Teletrac brand that offers fleet tracking and fleet management solutions to small and medium-sized businesses.

 

Commenting on Vector's investment in Trafficmaster, David Fishman (News - Alert), a Partner at Vector Capital who will join Trafficmaster's Board of Directors, said that he looked forward to partnering with an exceptional management team and employee base.   

 

Vice president, Vector Capital, Andy Fishman also indicated that the momentum exhibited by Trafficmaster offered a compelling value proposition for large and mid-size fleet operators. With the U.S. fleet management market experiencing double digit growth rates over the past five years, the acquisition would only act as a catalyst in accelerating the expansion. 

 

Tony Eales, CEO, Trafficmaster said the combination of attractive sector trends and Trafficmaster's unique products would provide a solid platform for future acquisition opportunities. Being a private company, Trafficmaster was in a position to strengthen the company;s leadership in telematics and fleet management solutions.

 

Commenting on the benefits of the acquisition, Eales said that the partnership would enable Trafficmaster to scale to higher levels, enhance capabilities and improve customer service during the process of growth.

 

With over 6,000 local fleets and over 100,000 commercial vehicles across the US, Trafficmaster is one of the largest vendors in the local market., and Teletrac is a hosted, subscription-based software solution that provides fleet managers real time visibility to their trucks. In addition, Trafficmaster Plc also invests in new development through its Emerging Products area, focusing principally on project-led activities. 

 

Vector Capital is a leading global private equity firm specializing in spinouts, buyouts and re-capitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets.