Tire maker Michelin agreed to acquire NexTraq, a U.S. provider of commercial fleet telematics, in an all-cash transaction.
Terms were not disclosed.
Atlanta-based NexTraq is a subsidiary of Fleetcor Technologies Inc., a global provider of fuel cards and workforce payment products.
NexTraq provides solutions for driver safety, fuel management and enhancing fleet productivity, according to the French tire maker.
“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, 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,” he added.
Fleetcor Chairman and CEO Ron Clarke 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, about 7,000 fleet customers and 116,000 individual subscribers. The unit will operate independently within Michelin North America, the company said.
NexTraq technology 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, Michelin said.
Michelin, headquartered in Clermont-Ferrand, France, is present in 170 countries, has 111,700 employees and operates 68 production facilities in 17 countries, which together produced 187 million tires in 2016.