Michelin North America Inc. has acquired Atlanta-based NexTraq, a commercial fleet telematics company.
Created in 2000, NexTraq's technology focuses on driver safety, fuel management and enhancing fleet productivity. NexTraq says it has specialized in GPS fleet management solutions for fleets of small commercial vehicles (classes 3-5), with fleet sizes ranging from two to 50 vehicles.
NexTraq has 117 employees, approximately 7,000 fleet customers and 116,000 individual subscribers. The unit will operate independently within Michelin North America.
"Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group's overall business plans," says 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."
Michelin bought NexTraq, in an all-cash sale, from FleetCor Technologies Inc., a company that specializes in fuel cards and workforce payment services.
"While we were able to grow NexTraq's operating income nearly 400% since we acquired the business, and able 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," says Ron Clarke, chairman and CEO of FleetCor.
"NexTraq has technology that, among other capabilities, monitors reckless driving and stops texting while driving," says Dimenna. "This capability is an excellent cultural fit with Michelin's purpose and long-standing commitment to road safety."
The closure of the acquisition deal is subject to completion of certain customary conditions, Michelin says, including clearance under the Hart-Scott-Rodino Act.
For more information, visit www.michelinman.com.