Omnitracs, a provider of fleet management services to transportation and logistics companies and a portfolio company of Vista Equity Partners, has agreed to acquire XRS Corporation, a provider of mobile fleet optimization software, at an equity valuation of $178 million. Omnitracs expects to complete the acquisition in the fourth quarter of 2014.
XRS (NASDAQ: XRSC) provides software that is used by trucking companies to manage their fleets, comply with regulations, and reduce operating costs. The company’s mobile solutions have no upfront hardware costs and run on smartphones, tablets and other handheld devices. XRS has sales and distribution partnerships with major wireless carriers supporting the US and Canadian trucking industries. The company is based near Minneapolis in Eden Prairie (www.xrscorp.com).
Omnitracs is a provider of fleet management services including software applications, information services, and hardware platforms for private and for-hire fleets. The company’s products are used for safety and compliance, fuel efficiency, driver retention, fleet productivity, GPS fleet tracking, and fleet maintenance. Omnitracs serves more than 2,500 private and for-hire fleet customers and more than 270,000 vehicles throughout North American and Latin America. Omnitracs is headquartered in San Diego (www.omnitracs.com).
Vista Equity Partners acquired Omnitracs from Qualcomm in August 2013 for $800 million. In December 2013, Omnitracs acquired Roadnet Technologies, a provider of fleet management software to private fleets. Other previous acquisitions include Sylectus and FleetRisk Advisors, which is now Omnitracs Analytics.
“This agreement to purchase XRS represents another milestone in the renewed growth of Omnitracs and further demonstrates our continued commitment to retaining and advancing our position as the leading software provider within the transportation and logistics industry,” said John Graham, CEO of Omnitracs.
Vista Equity Partners has more than $13 billion in committed capital and makes equity investments in enterprise software businesses and technology-enabled services companies. The firm was founded in 2000 and has over 50 investment professionals operating out of San Francisco, Chicago and Austin (www.vistaequitypartners.com).
Committed financing for the transaction is being provided by Royal Bank of Canada, Credit Suisse, and Guggenheim Partners.
Jefferies acted as financial advisor to Omnitracs and William Blair acted as financial advisor to XRS Corporation.
© 2014 PEPD • Private Equity’s Leading News Magazine • 9-2-14
