Fleet management equipment producer Omnitracs agreed yesterday to acquire SmartDrive, a US-based telematics system provider that counts automotive component maker Wabco and tyre manufacturer Michelin among its investors.
Although neither company officially disclosed the sale price, Barrons reported that the transaction is set to be sized at $450m.
SmartDrive is the developer of a video-based telematics system that captures data covering factors such as fuel capacity, engine health and distance between vehicles, using cameras mounted on the interior and exterior of a vehicle, in order to help improve safety and efficiency.
The acquisition will allow Omnitracs to provide an end-to-end system that uses artificial intelligence and machine learning, and which covers multiple parts of the transport system from freight trucking to oil and gas delivery.
Omnitracs CEO Ray Greer said: “By integrating SmartDrive’s unparalleled transportation intelligence platform, video safety hardware and risk analysis service offering with the Omnitracs One platform, we can deliver a converged solution built on AI and ML that redefines the future of commercial transportation today.
“Real-time risk mitigation, streamlined data flows from the cab and vehicle sensors to dispatch and the back office, and a superior driver experience will be brought together to improve safety, efficiency and operational excellence.”
SmartDrive had raised more than $265m since being founded in 2005, most recently pulling in $90m from TPG Sixth Street Partners, a joint venture between private equity group TPG and investment firm Sixth Street Partners, in September 2019.
Wabco, Oak Investment Partners and New Enterprise Associates (NEA) had provided $50m in funding for SmartDrive in 2015 and returned in 2017 for a round of undisclosed size that was led by Michelin North America.
The company had previously received $47m in funding from Stanford University and existing investors Oak Investment Partners and NEA in 2012. Its earlier backers include Edelson Technology Ventures, Revolution Ventures, Founders Fund and Western Technology Investments.
Image courtesy of SmartDrive Systems, Inc.
