Private equity firm Three Hills Capital Partners (THCP) is acquiring a significant minority stake in telematics technology firm Trak Global Group (TGG).
TGG is one of the world’s leading telematics technology companies with operations in the UK, Europe and North America.
The deal comes less than a year after TGG acquired IMS, one of North America’s three leading telematics solution providers.
TGG confirmed that THCP’s investment will be focused on supporting growth in the North American territory.
The telematics business has long-standing partnerships with global insurers, mobility operators and motor manufacturers, gathering and interpreting data from devices to help organisations manage driver and vehicle risk.
TGG chief executive officer Nick Corrie said the partnership creates a capital structure that will “enable us to more rapidly execute our ambitious growth plans, both organic and by acquisition, to become the global leader providing connected, data-driven technology solutions for the insurance and shared mobility markets”.
The capital investment of more than £40 million will accelerate the deployment of the next generation of IMS’s cloud-based telematics platform, DriveSync6.
Corrie added: “This is a real milestone for TGG, as we celebrate a decade in business. In THCP we’ve found an investment partner that believes in our vision, is very well-aligned culturally and possesses the expertise to help steer the business through what will be an exciting phase of growth.”
Joe Jeffries of THCP, who will join TGG’s board, said: “Trak Global is our first investment in the IoT and telematics space, and during our detailed diligence into the sector it quickly became clear that TGG was the stand-out performer. The combination of management team strength and vision, as well as the company’s relentless focus on forming true partnerships with their customers, made for a compelling investment case.”