Michelin to acquire NexTraq from Fleetcor

French tyre maker Michelin is set to acquire NexTraq, the US-based provider of commercial fleet telematics.

Based in the Atlanta area, NexTraq is a subsidiary of Fleetcor Technologies, a global provider of fuel cards and workforce payment products. The company provides solutions for driver safety, fuel management and enhancing fleet productivity.  NexTraq, incepted in 2000, provides GPS fleet management solutions for fleets of small commercial vehicles ranging from two to 50 vehicles.

“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans. 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,” said Ralph Dimenna, CEO, Michelin Americas Truck Tires, the heavy truck unit of Michelin North America.

Commenting on the decision, Ron Clarke, chairman and CEO, Fleetcor (past owner of NexTraq) said, “While we were able to grow NexTraq’s operating income nearly 400 percent since we acquired the business and to generate a strong return for our shareholders, our decision to divest NexTraq centered on the conclusion that there is insufficient synergy with our core payments business to stay invested in the space. We would especially like to thank the NexTraq management team for their hard work and success in building a market-leading telematics business.”

NexTraq has 117 employees, approximately 7,000 fleet customers and 116,000 individual subscribers. The unit will operate independently within Michelin North America.