Michelin swoops for telematics business

Michelin has announced the acquisition of a Leeds-based telematics firm.

Masternaut operates primarily in the UK and France and manages over 220,000 vehicles under contract. The transaction has been made on the basis of eight times 2018 EBITDA before synergies.

The firm, which last reported annual revenues of £30m, will continue to operate under its own brand as a fully-owned subsidiary within Michelin. The transaction is expected to close within the next 60 days.

Michelin said the acquisition will speed up the development of its services and solutions business for light vehicles and support the booming fleet market.

It added that it would also enable Masternaut to roll out across Europe and increase the volume of data captured. Michelin said it was consolidating its expertise in telematics.

Masternaut is Michelin’s third major acquisition in the fleet telematics industry, with previous investments in Nextraq in North America and Sascar in South America. This acquisition provides Michelin access to Europe’s rapidly-growing telematics market – projected to grow by over 15% per annum in the next five years.

Florent Menegaux, managing partner of Michelin, said: “Michelin is consolidating its expertise in telematics, enabling us to optimise customer mobility and respond to the needs of a changing market. Masternaut represents a further step in the expansion of our Services & Solutions business, especially in Europe and for light vehicle fleets.”

Dhruv Parekh, CEO of Masternaut, added: “Over the last four years, I have been incredibly proud of what we have achieved. Masternaut Connect today is one of the fastest growing telematics platforms in Europe, with an industry-leading Net Promoter Score. Our investment in an enterprise-grade IoT platform has enabled us to launch new products in a scalable way. Together with the Michelin brand, we are well-positioned to expand in the connected vehicle industry across Europe. Operating within the Michelin Group accelerates our ability to achieve the vision of a connected world that is safer, cleaner and more productive.”

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