Xirgo Technologies, a portfolio company HKW, has acquired the assets of Owlcam. HKW acquired Xirgo in December 2016.
Palo Alto-based Owlcam is a provider of artificial intelligence (AI) technology used in vehicle-based cameras to monitor, record, and report on stationary and mobile activities. Owlcam’s technology is used to minimize incidents involving poor driver behavior, reduce accidents, and lower associated insurance claims.
Xirgo provides machine-to-machine (M2M) telematics modules that support communication among devices connected to the Internet of Things (IoT) sector. M2M refers to devices other than cell phones that use wireless networks to communicate with other devices or networks. Typically, a small device known as an M2M module is embedded in a larger device that needs to communicate over the wireless network. Xirgo’s products are used in fleet management, heavy equipment, asset tracking, usage-based driving, high-risk vehicle finance, and rental applications. The company, led by CEO Shawn Aleman, is headquartered near Los Angeles in Camarillo, California.
“We are excited about adding Owlcam’s technology to the Xirgo product portfolio and the immediate impact it’s going to bring to our enterprise customer base,” said Mr. Aleman. “Delivering AI camera technology with our existing vehicle telematics products was already part of Xirgo’s short-term road-map and strategic vision. The addition of Owlcam technology has allowed us to accelerate that vision, putting us significantly ahead of our original timelines.”
“The intellectual property associated with Owlcam’s products as well as related AI technology fits well with Xirgo’s current portfolio,” said Luke Phenicie, HKW’s lead transaction partner. “We have confidence in Xirgo’s leadership by leveraging AI camera technology to increase market penetration in the vehicle telematics space. We appreciate the opportunity to continue supporting Xirgo as part of HKW’s ongoing interest in companies focused on IoT.”
The buy of Owlcam follows Xirgo’s buy in June 2019 of Baltic Car Equipment, a Lithuania-based provider of telemetry and automotive security products and software used for fleet management of light vehicles, trucks, heavy machinery, and agricultural equipment. This acquisition allowed Xirgo to establish a European footprint and improve its access to the European, Middle East, and African telemetry markets.
HKW invests in companies with revenues between $20 million and $200 million and EBITDAs between $5 million and $30 million. Sectors of interest include business services, health and wellness, and infrastructure services and products. Earlier this month, HKW held a final close of its $365 million fifth fund, HKW Capital Partners V LP. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York.
© 2020 Private Equity Professional | March 12, 2020
