US-based XATA Corporation, a provider of fleet management solutions to the truck transportation industry, has purchased Canada-based Turnpike Global Technologies (Turnpike), a fleet operations solutions provider, for $20m in cash and stock.
Under the acquisition, Turnpike will operate as a division of XATA, with Turnpike’s divisional management reporting to the XATA executive team.
XATA has received $30m in funding from Technology Crossover Ventures (TCV) and Trident Capital. TCV's investment in XATA will facilitate the acquisition of Turnpike and provide added capital to accelerate XATA’s growth, eliminate debt and strengthen its balance sheet. Trident Capital, a XATA investor, is also participating in the new investment.
According to XATA, purchasing Turnpike will allow XATA to continue its growth strategy by expanding XATA’s addressable market to include small and medium-size fleets in North America and key vertical markets, such as less than truckload and beverage, where Turnpike’s product functionality meets specific customer needs.
With the acquisition, XATA has more than 100,000 systems deployed with over 1,400 customers across North America. The acquisition will also expand XATA’s product portfolio and expertise in the PDA market and distribution through channel partners, such as Sprint and AT&T.
Brendan Staub, president and CEO of Turnpike, said: “This is an exciting milestone for our company. XATA is a recognized leader of fleet optimization solutions and the perfect company for us to scale our growth. Jointly, we can go to market with solutions ranging from self-explanatory products to totally integrated systems that will create exciting growth opportunities for our customers and our employees.”
Jay Coughlan, president and CEO of XATA, said: “TCV has a strong reputation and history of success. With the Turnpike acquisition, we significantly expand the markets we service, more easily expand our hardware flexibility to PDAs and better fulfill our mission of serving the market overall.”
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