Lytx to Be Sold to Private Equity Firm GTCR for $500 Million
Lytx Inc., the largest supplier of video-based safety systems for the trucking industry, has agreed to be acquired by private equity firm GTCR for more than $500 million.
The all-cash transaction is expected to close by the end of March.
The San Diego-based technology vendor, best known for its DriveCam program, said its acquisition by GTCR will help the company expand its technology and service offerings as the video safety market for trucking continues to grow.
“This new chapter will allow us to significantly expand the portfolio of services delivered to our growing installed base, and give us the room to deliver a broader variety of actionable data to help our clients solve tough business problems,” Lytx CEO Brandon Nixon said.
Chicago-based GTCR said it has invested $12 billion in more than 200 companies since its inception in 1980. The private equity firm has focused on companies in the financial services, health care, technology, telecommunications and business services sectors.
“With an unrivaled set of solutions, services and blue chip clients, Lytx is already driving its strong vision of expanding the video telematics category, and their clear market leadership is proof that the team can continue to record stellar results,” GTCR Managing Director Phil Canfield said in the Feb. 18 statement.
Lytx will retain its executive leadership team, and Nixon will remain chairman of the board, the company said.
Citing research firm Frost & Sullivan, Lytx said it holds about 66% of the video safety market.
The company recently reported a record sales year in 2015 with 102,000 new subscriptions, up nearly 80% compared with the previous year.
“Over this past year, video telematics pivoted from being a nice-to-have to a must-have among commercial and public sector fleets,” Nixon said.
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|By Seth Clevenger|
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