Telematics and tracking company Trackunit has acquired the Industrial Internet of Things (IIoT) division of US based ZTR for an undisclosed fee.
The move follows Hg acquisition of a majority stake in Trackunit in March, in order to help ‘accelerate the Danish company’s expansion plans’ - see: New investor for Trackunit.
The acquired business employs around 130 ZTR staff at two dedicated locations in Canada and one in the Netherlands. It will now be incorporated into Trackunit as it merges into a single entity with 350 employees and 16 locations across the world. The new company will be headed by Trackunit chief executive Soeren Brogaard, who will be joined by ZTR chief executive Sam Hassan as head of strategy. The merger is expected to double Trackunit's revenues and take its total number of connected assets to somewhere in the region of one million.
Subject to the necessary approvals, the new entity will be formed by the end of November. It will then look to focus on "creating products that enhance utilisation, help increase fleet availability, improve safety and reduce equipment loss, along with creating solutions that help customers collect data and translate it into usable information".
Brogaard said: “We see the industry at a pivotal tipping point when it comes to digitalisation of their business and equipment – and customers are looking for a trusted partner. Together, we will strengthen our core focus on enabling the ecosystem of construction. By combining our businesses, we will elevate our technology and increase the value customers will be able to extract from their data. We are focused on delivering our existing customer commitments and creating a smooth integration. This is all about bringing people, competence, and great technology together to create a bigger impact.”
Hassan added: “By combining ZTR IIoT and Trackunit resources and offerings, we are better equipped to serve the needs of the customers now and in the future. By coming together with Trackunit, we will be able to operate on a global scale to provide an expanded offering to our customers with greater efficiency and depth. ZTR and Trackunit together represent an incredible next step that will enable us to become a truly global player to better serve our customers. I’m excited to roll up my sleeves and take an active part in the executive team. I look forward to venturing out on this shared mission - one in which I have no doubt Soeren Brogaard will capably lead.”
Geographically, ZTR has a strong market share in North America while Trackunit is strong in Europe. Both companies have also taken their first steps into the Asia Pacific region, but will now be looking to step this up a gear through further investment in the region.
Hg is a private equity firm with more than $30 billion worth of funds under management, from investment offices in London, Munich and New York. The company began life as Mercury Private Equity, the private equity arm of UK based Mercury Asset Management. Mercury Asset Management was acquired by Merrill Lynch in 1997, and then the subject of a management buyout in late 2000.