Michelin Group has agreed to buy an Atlanta company that uses GPS and cloud technologies to remotely track and manage fleets of small commercial vehicles.
The French tire maker said its purchase of NexTraq would be an all-cash transaction, but it did not specify terms beyond that. The deal is scheduled to close in the third quarter, Michelin told UBJ.
Michelin said NexTraq would operate independently within Greenville-based Michelin North America but would continue to be based in Atlanta and operate a telesales center in Tampa.
NexTraq sells monthly subscriptions to various digital services that help fleet operators track, manage, and dispatch vehicles. Michelin said NexTraq has 117 employees and about 7,000 small to medium trucking companies as customers.
Ralph Dimenna, chief operating officer for Michelin North America’s heavy truck tire business, said through a company spokesperson that the acquisition would enable Michelin to build on what it had learned from buying Sascar, a Brazilian company that also uses digital technology to manage fleets.
Michelin Group announced the Sascar acquisition in 2014, reporting at the time that Sascar’s technology was being used to manage 190,000 trucks and the company had annual revenues equivalent to 91 million euros.
Michelin said then that the purchase price was 440 million euros, or more than $490 million at the current exchange rate, plus 80 million euros in debt.
Asked if Michelin plans any changes at NexTraq, Dimenna said, “Business plans will be discussed at a future time.”