Institutional Venture Partners, Investcorp lead FleetMatics’ $68 million investment

Dec. 13, 2010
BOSTON — FleetMatics, a GPS tracking applications company for commercial fleets, announced that it has closed a $68 million growth equity financing. As part of the round, Institutional Venture Partners (IVP), a later-stage venture capital and growth equity firm, invested with Investcorp Technology Partners, FleetMatics’ majority owner. New World Ventures also participated as a new investor.

BOSTON — FleetMatics, a GPS tracking applications company for commercial fleets, announced that it has closed a $68 million growth equity financing. As part of the round, Institutional Venture Partners (IVP), a later-stage venture capital and growth equity firm, invested with Investcorp Technology Partners, FleetMatics’ majority owner. New World Ventures also participated as a new investor.

More than 12,500 businesses globally use the FleetMatics tracking system, and the GPS fleet tracking provides customers with an arsenal of tools that helps reduce operating expenses while increasing productivity and improving customer service. FleetMatics provides customers with an effective way to measurably save money and increase productivity on a daily basis.

In conjunction with the financing, IVP’s General Partner Sandy Miller has joined the FleetMatics Board of Directors.

“We are very pleased to welcome FleetMatics to IVP's portfolio of exceptional technology companies," said Miller. “FleetMatics is a rapidly growing, profitable business that has tremendous growth potential and I am looking forward to working with FleetMatics’s management team and board of directors to accelerate its growth and industry leadership."

"This growth investment will be an important source of capital to help us accelerate our growth and drive key initiatives,” said Jim Travers, CEO of FleetMatics. “FleetMatics will elevate our ability to expand our best-in-class products and services offerings to meet the needs of fleets of all sizes. Fleetmatics is in a stronger position to quickly reach our goal of being the leading global software-as-a-service (SaaS) provider of vehicle management solutions."

Also in August, FleetMatics and SageQuest announced the completion of a merger agreement. FleetMatics agreed to acquire 100% of the outstanding shares of SageQuest, creating a combined new entity. The terms of the transaction were not disclosed.

“With this acquisition of SageQuest, FleetMatics will extend our ability to deliver the best-in-class products and services to fleets of all sizes," said Travers. "It is the strength of our combined products and services, as well as our reputation as superior service providers that compelled this combination to happen. Together we possess an unmatched set of products and services. We are now in a stronger position to capture market share faster than our competitors and accomplish our goal of being the leading global software-as-a-service (SaaS) provider of vehicle management solutions.”

“We are excited about the prospects of growth through our combined efforts,” said Dennis Abrahams, president of SageQuest. “While both organizations have had successful records of performance, this merger positions us as the clear market leader. We now have the scale and financial stability to expand our reach into the commercial fleet market. We will be able to offer new customers the best solutions available anywhere, while providing our existing customers the exceptional products and support they have come to expect.”

FleetMatics is a privately-funded software-as-a-service (SaaS) company focused on live GPS tracking for fleet vehicles. FleetMatics’ software offerings are designed for businesses that focus on improving customer service, real-time operations visibility and maximum performance from their vehicles and service representatives. FleetMatics handles major technology issues, enabling customers to realize a rapid and ongoing ROI that includes increased revenue, reduced costs, and ability to grow profitably.

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