Omnitracs announces $178 million takeover of XRS
September 3, 2014
Fleet management player Omnitracs has agreed a $178 million takeover of software developer XRS Corporation in a move aimed at strengthening its position in the transportation and logistics technology market.
XRS develops software that helps trucking companies to manage their fleets, comply with regulations and reduce operating costs.
It claims to have led the trucking industry’s migration to mobile devices for collecting and analyzing compliance and management data.
Omnitracs (San Diego, CA, USA) has made a number of similar acquisitions since being sold by semiconductor player Qualcomm (San Diego, CA, USA) to private equity player Vista (San Francisco, CA, USA) in November 2013.
Most notable was the company’s acquisition of Roadnet Technologies, another fleet management software developer, in December 2013, but Omnitracs has also taken over Sylectus and FleetRisk Advisors, which has now been rebranded as Omnitracs Analytics.
Omnitracs says that in combination with XRS it will be able to develop new products and services that help fleets stay safe and improve productivity.
“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, the chief executive of Omnitracs.
“XRS has built a significant business focused on delivering transportation management solutions via mobile devices, and we believe this is a great addition to our suite of offerings,” he added. “Whether building on the strength of our core technology or expanding our portfolio, we continually seek opportunities to drive innovation and deliver long-term value to our current and future customers.”
XRS says the acquisition delivers an attractive premium for its shareholders.
“With complementary solutions designed to meet the varying needs of fleets across the transportation and logistics industry spectrum, our combined organizations can continue to innovate and deliver end-to-end solutions for our customers,” said Jay Coughlan, the chairman and chief executive of XRS.