Global tire maker Michelin has agreed to acquire NexTraq, a U.S. provider of commercial fleet telematics services, from its parent company, FLEETCOR Technologies, Inc., in an all-cash transaction.
“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans,” said Ralph Dimenna, COO for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America, in a statement.
“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 U.S.,” he added.
Since its inception in 2000, Atlanta-based NexTraq has primarily focused on providing solutions for small fleets ranging from two to 50 vehicles mainly comprised of Class 3-5 commercial vehicles. It currently employs 117 workers, serves approximately 7,000 fleet customers and 116,000 individual subscribers.
The unit will operate independently within Michelin North America, according to both companies.
“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,” Michelin’s Dimenna added.
Ron Clarke, chairman and CEO of FLEETCOR, said his firm is divesting its ownership of NexTraq because “there is insufficient synergy with our core payments business” in the fuel card services arena to stay invested in the telematics space.
