June has been a busy month for Mergers and Acquisitions in the global transport industry, particularly in the telematics space.
US-based transport telematics provider, Trimble, acquired Iowan company Innovative Software Engineering (ISE), an engineering and software systems integration firm.
The acquisition reportedly expands Trimble's fleet safety and compliance solutions and allows it to offer electronic logs services in line with the upcoming Electronic Logging Device (ELD) mandate in the US.
According to the Federal Motor Carrier Safety Administration (FMCSA), the ELD mandate is expected to impact 3.4 million drivers across the United States
“ISE's broad industry expertise and innovative solutions extend Trimble's capabilities in providing fleet safety and compliance,” said James Veneziano, Senior Vice President, Trimble.
“By acquiring ISE, we can further develop comprehensive solutions and services to enable our customers to realise improved efficiencies and greater levels of safety within their organisation.”
“For more than 15 years, ISE has dedicated itself to providing enterprise and tailored software solutions to its clients. Our Fleet Services products provide fleets with end-to-end solutions that solve complex safety and compliance issues,” said Hass Machlab, founder, President and CEO of ISE.
“In joining Trimble, we look forward to being part of an organization that shares this dedication and leveraging synergies that will enable continued innovation to benefit all of our customers.”
Also in the telematics sector, Michelin has agreed to acquire NexTraq, a US provider of GPS fleet management solutions for driver safety, fuel management and enhancing fleet productivity.
“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans,” said Ralph Dimenna, Chief Operating Officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America.
“NexTraq represents a strategic acquisition that accelerates our growth in telematics with synergies that increase our scale, expand our geographic footprint and strengthen overall competitiveness in fleet management technology and services in the United States.”
Meanwhile, US freight transportation management company Hub Group has entered into an agreement to acquire the business of Estenson Logisticsfor approximately US$306 million (ca. €275 million).
“We are extremely pleased to welcome Estenson’s drivers, employees, and customers into the Hub Group family,” said David Yeager, Hub Group Chairman and Chief Executive Officer.
“We have been searching for an acquisition in the dedicated space for some time and have found an organisation with a great fit in terms of culture, management style and business philosophy.
“Estenson has a long history of outstanding customer service and is focused on safety and providing its employees with a solid foundation for growth. We believe that cross-selling opportunities are in excess of US$100 million in the next five years. We are looking forward to working with the Estenson team.”
Estenson's leadership team, including Tim Estenson, CEO, will continue in their current roles.
“We built our company from the ground up and we are passionate about a superior customer experience and employee satisfaction,” said Estenson.
“It was extremely important to me personally to find a home for us that shares those values. This is why we are extremely excited to be a part of the Hub Group family and I am looking forward to staying on board to see our company continue to flourish.”
Also in June, UK transport and logistics company, Clipper Logistics, announced its acquisition of retail warehousing and distribution service provider, Tesam Distribution for £11.75m (€13.46) and Icelandic logistics company Eimskip has strengthened its position in worldwide logistics services by acquiring 75 per cent of Denmark-based freight forwarding company, Ship-Log.