National Express drives off with majority stake in Silicon Valley firm
Birmingham’s National Express has acquired a 60% stake in a Silicon Valley employee shuttle company at a cost of $84.3m (£64.5m).
National Express said that WeDriveU Holdings is one of the “world’s largest and fastest growing companies” with revenues of $139.9 million and normalised operating profits of $15.4m for the year ended 31 December 2018. The company transports almost 7 million passengers annually.
National Express said there was also options to acquire the remaining shares in the company in tranches over the next three years, with the option price dependent on WeDriveU’s profitability.
WeDriveU CEO Dennis Carlson and the senior management team retain the remaining shares, and will stay in place to oversee the next phase of their expansion.
The acquisition diversifies the the National Express North American operations, which is says are worth an annual $500m, outside School Bus operations.
WeDriveU provides employee shuttle services to many of the largest Fortune 500 companies based in Silicon Valley and the broader San Francisco Bay area.
It also has a presence in several other US cities including Los Angeles, Seattle, Boston, Portland, Denver and Austin.
National Express said that the business had grown rapidly in recent years with new contracts and an expansion in existing customer services.
Dean Finch, CEO of National Express Group, said: “I am delighted WeDriveU are joining National Express as part of our strategic acquisition programme. As the premier operator in Silicon Valley and the wider San Francisco Bay Area, WeDriveU provides the opportunity for expansion into a fast-growing market. WeDriveU also has a presence in other fast-growing cities in the US, which present other platforms for growth in this very attractive market.
“I am impressed with the growth Dennis has achieved in recent years and the whole business’ commitment to safety and customer service, which mirrors our own. I look forward to working with Dennis and his team to achieve their exciting growth plans and exploit additional, complementary opportunities as part of National Express Group to deliver further value to our shareholders.”
WeDriveU’s chairman and CEO Dennis Carlson said: “I am delighted to be joining National Express. We have grown our business significantly in recent years and plan to continue expanding into new markets, drawing on National Express’ reputation for excellence and its extensive nationwide presence. I look forward to working with Dean and the team in this exciting next phase for our business.”
