Bestpass Acquires Fleetworthy Solutions
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Toll management and payment platform Bestpass Inc. on Nov. 28 announced has acquired Fleetworthy Solutions Inc. in what Bestpass said will allow the new business to provide a one-stop platform for all aspects of tolling, compliance and safety solutions for all sizes of commercial fleets.
Bestpass said that earlier this year that the company’s lead private equity investor, Susquehanna Growth, and another company, Insight Partners, raised more than $100 million for expansion, and this deal will exceed that amount.
The companies said the transaction has closed, and both will continue to operate under their respective brands.
“Fleetworthy and Bestpass have been partners for several years, and we have a few joint accounts where our customers have been letting us know this is a great combination,” Bestpass CEO Tom Fogarty told Transport Topics. “When I meet with customers and ask them what more we can do for them, they have suggestions about how to solve some of the challenges to keep their vehicles safe, compliant and on the road, and tolling is just a piece of that. This matches our vision of making it a lot easier for fleets and the managers to accomplish that vision.”
Fogarty says between the companies they will have more than 30,000 accounts. While Bestpass has focused most of its growth in the for-hire fleet sector, Fleetworthy has seen its market share improve in terms of over-the-road trucking firms.
“Our customers want more data and information to know what’s happening from a compliance perspective,” Fleetworthy Solutions CEO Michael Precia told TT. “A lot of people don’t realize that toll management straddles driver behavior and the ability to keep those assets on the road legally. Because if you don’t have a good toll program in place, they may be impounded because you’re blowing through tolls and not managing it properly, and that costs a lot of money to these carriers.”
Bestpass will continue to focus on its toll management system with the 70 tolling authorities that operate in the U.S.; Fleetworthy will focus primarily on providing data on driver behavior, as well as handling issues concerning vehicle registrations and expanding its CP suite of dashboards and analytics for compliance, safety and overall operations.
Each company has about 150 employees at locations in Albany, N.Y., where Bestpass is located, and Madison, Wis., where Fleetworthy is located. Both executives said there are plans to expand staffing levels and keep the headquarters of both companies in their present locations.
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“We think the combined heft will allow us a better branding in the market,” Fogarty said. “We’re growing well, but there are a lot of fleets that don’t know about us, and we will be investing in marketing activities and make sure they are aware of the return on investments we have for our clients.
“There is roughly 70% of the market that is trying to manage this on their own with tolling authorities, the customer service, wait times and analyze your bills, and there’s room for growth. Tolling is very complex with the 70 different tolling authorities we are networked to, and trying to do it yourself is just nuts.”
Bestpass, founded in 2001, has more than 30,000 customers. The company said it processes more than $1.5 billion annually in toll transactions, including a range of options of customized solutions for independent owner-operators, regional fleets and national, coast-to-coast trucking companies.
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Fleetworthy has more than 40 years of transportation industry expertise, providing DOT safety and regulatory compliance services to commercial fleets. The company also said it assists private fleets, for-hire carriers and third-party logistics companies in helping them achieve compliance with federal, state and local regulations.
Fleetworthy uses a cloud-based solution to provide compliance industry software to offer what it calls seamless technology, reliable data and knowledgeable people. It also offers related compliance-focused services, including vehicle and driver safety compliance, audit support and extended fleet services.
This is the latest move by Bestpass since the company shifted from its previous nonprofit status and Susquehanna Growth invested in the technology company. Last year, Bestpass acquired ExpressTruckTax, a platform to e-file Heavy Vehicle Use Tax, adding tax services to its portfolio. Also in 2022, it announced a strategic partnership with Drivewyze to provide an integrated offering of toll and weigh station bypass solutions.