US-based car safety technology provider Lytx is set to be acquired by private equity firm GTCR, providing an exit to Volvo Group Venture Capital, the corporate venturing arm of car manufacturer Volvo.
The deal, announced yesterday, is worth more than $500m in cash and is expected to close in the first quarter.
Founded in 2008 as DriveCam, Lytx has developed a range of products that help drivers stay safe. The company’s ActiveVision technology, for example, detects and addresses distracted or drowsy driving in real-time.
Lytx markets its technologies as subscription-based services both to private customers and to corporate clients such as trucking companies.
Lytx’s executive leadership team will remain in their roles, while Brandon Nixon, current chief executive and chairman of the board, will continue to serve as chairman.
Volvo Group Venture Capital invested an undisclosed amount in Lytx in 2013 as part of a strategic partnership to bring the company’s products to the commercial vehicle sector.
Lytx secured $85m in 2011 from private equity firm Welsh, Carson, Anderson and Stowe to fund an acquisition of Rair Technologies, which offers regulatory compliance services to fleet operators.
The company also raised a total of $69m in series B, C and D capital between 2005 and 2009, though it has not disclosed details about its series A round. Investment firm Leader Ventures provided $4m in debt financing in 2009.
Lytx’sother backers include Triangle Peak Partners, Menlo Ventures, JMI Equity, Insight Venture Partners and Integral Capital Partners.
Brandon Nixon said: “Over this past year, video telematics pivoted from being a nice-to-have to a must-have among commercial and public sector fleets.
“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.”