Michelin to acquire commercial truck telematics provider NexTraq; pushing to grow its services business
Michelin will acquire NexTraq, a US provider of commercial fleet telematics, in an all-cash transaction. Based in the Atlanta area, NexTraq is a subsidiary of FLEETCOR Technologies, Inc., a leading global provider of fuel cards and workforce payment products.
NexTraq provides solutions for driver safety, fuel management and enhancing fleet productivity. Since its inception in 2000, NexTraq has become a leading provider of GPS fleet management solutions for fleets of small commercial vehicles (classes 3‒5) ranging from two to 50 vehicles.
The company offers both hardwired and plug-n-play 3G vehicle tracking devices, and offers devices on the CDMA (Verizon), GSM and HSPA+ (AT&T) networks. The tamper-proof devices provide up-to-the-minute tracking and have a built-in accelerometer for accurate driver behavior data. Many of the devices have multiple I/O ports to support various add-on features such as:
- Driver ID sensors
- Power take-off sensors
- Temperature sensors
- Pick-up/drop-off sensors
NexTraq also offers mobile-network based and satellite-based asset tracking, trailer tracking and heavy equipment tracking devices.
Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans. 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.
NexTraq has technology that, among other capabilities, 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.Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America
The closing of the acquisition is subject to completion of certain customary conditions, including clearance under the Hart-Scott-Rodino Act.
At the Michelin Movin’On 2017 sustainable mobility conference (earlier post) this week in Montreal, the company said that its sustainable growth strategy is built on four pillars, one of which is doubling the revenue generated by its service activities by 2020.
The other three pillars are:
Driving a 20% increase in the revenue generated by its tire businesses by 2020;
Increasing by threefold the revenue generated by its activities designed to enable people to live unique mobility experiences by 2020; and
Leadership in the high-technology materials segment.