XATA Raises $30M in Financing, Acquires Turnpike Global
December 04 2009 - 1:59PM
PR Newswire (US)
Funding and Subsequent Acquisition Further Widens XATA's Footprint
in the Industry MINNEAPOLIS, Dec. 4 /PRNewswire-FirstCall/ -- XATA
Corporation (NASDAQ: XATA), today announced it has received $30
million in funding from Technology Crossover Ventures (TCV) and
Trident Capital, and that it has purchased Ontario Canada-based
Turnpike Global Technologies (Turnpike) for $20 million in cash and
stock. TCV is one of the largest venture capital firms focused
solely on information technology, with more than $7.7 billion under
management. Its investment in XATA will facilitate the acquisition
of Turnpike and provide added capital to accelerate XATA's growth,
eliminate debt and strengthen its balance sheet. Trident Capital--a
longtime XATA investor--is also participating in the new
investment. "XATA Corporation is a strategic portfolio company that
brings strong technology and management leadership and exemplifies
the tremendous growth potential in the transportation management
market," said Woody Marshall, TCV general partner. "We are pleased
to invest in the company and we look forward to working with the
XATA team to further accelerate its expansion." Purchasing
Turnpike, a PDA-based fleet operations solutions provider, will
allow XATA to continue its growth strategy by expanding XATA's
addressable market to include small and medium-size fleets in North
America and key vertical markets, such as Less Than Truckload (LTL)
and beverage, where Turnpike's product functionality meets specific
customer needs. With the acquisition, XATA has more than 100,000
systems deployed with over 1,400 customers across North America.
The acquisition will also expand XATA's product portfolio and
expertise in the PDA market and distribution through channel
partners, such as Sprint and AT&T. "TCV has a strong reputation
and history of success," said Jay Coughlan, president and CEO of
XATA. "Our alignment with TCV and the acquisition of Turnpike are
clear indicators of our intention to aggressively move forward as a
leading provider of Fleet Performance Management solutions. This
alignment also reinforces our strategy of continuing to consolidate
the market through strategic acquisitions. With the Turnpike
acquisition, we significantly expand the markets we service, more
easily expand our hardware flexibility to PDAs and better fulfill
our mission of serving the market overall." "This is an exciting
milestone for our company. XATA is a recognized leader of fleet
optimization solutions and the perfect company for us to scale our
growth," said Brendan Staub, president and chief executive officer
of Turnpike. "Jointly, we can go to market with solutions ranging
from self-explanatory products to totally integrated systems that
will create exciting growth opportunities for our customers and our
employees." Under the acquisition, Turnpike will operate as a
division of XATA, with Turnpike's divisional management reporting
to the XATA executive team. Turnpike's fleet operation
applications, such as its end-to-end fuel tax process, are a
perfect complement to XATA's XATANET Fleet Performance Management
solution. About TCV Technology Crossover Ventures (TCV), founded in
1995, is a leading provider of growth capital to technology
companies, providing funds to later-stage private and public
companies. With $7.7 billion in capital under management, TCV has
made growth equity and recapitalization investments in over 170
companies leading to 45 initial public offerings and more than 30
strategic sales or mergers. Representative investments include
Altiris, eHarmony, Expedia, Fandango, Liquidnet, Netflix,
RealNetworks, Redback Networks, Solect Technology, TechTarget,
Travelport, Webroot, and Zillow. TCV has 11 partners and is
headquartered in Palo Alto, California. For more information about
TCV, visit http://www.tcv.com/. About Trident Capital Trident
Capital is a venture capital and private equity firm founded in
1993 by industry veterans. Since then, the firm has grown to more
than 20 investment professionals with $1.5 billion under management
invested in more than 150 companies. The firm's active investment
approach has helped dozens of companies, such as MapQuest and
iRobot, to realize successful exits. Trident specializes in
business services, information services and software, including
technology-leveraged outsourcing and processing for healthcare and
insurance, marketing and sales, and enterprise software for
security, communications and mobility. Trident's partners have over
100 years of collective operating experience, and bring extensive
industry knowledge and contacts to entrepreneurs and their teams to
help them achieve the level of success they deserve. Dedicated to
building businesses with strong infrastructures and putting them on
the path to profitability, Trident works with innovative businesses
to help them maximize their growth potential. About Turnpike Global
Technologies Based in Toronto, ON, Turnpike Global Technologies
provides simple solutions to the transportation industry that
result in immediate cost savings. Turnpike has been recognized as
the first company in North America to fully automate, from
end-to-end, the fuel and mileage tax process required by the
International Fuel Tax Agreement (IFTA). It's RouteTracker, a fleet
management device, connects directly to the engine diagnostic port
of medium and heavy duty trucks to collect and report on
operational statistics, GPS position and automate compliance
information. RouteTracker interacts with various handheld devices
using Bluetooth as a wireless in-cab communication medium. The
information collected by RouteTracker is made available to the
end-user via web-based reporting. RouteTracker installation takes
an average of only 10 minutes per truck. About XATA XATA
(NASDAQ:XATA) is the expert in optimizing fleet operations by
reducing costs and ensuring regulatory compliance for the trucking
industry. Our on-demand software and services help companies manage
fleet operations, enhance driver safety and deliver a higher level
of customer satisfaction. Offered through a fee-based subscription
service, XATA affordably oversees every truck in an organization's
fleet. XATA provides expert services to develop the business
processes required to deliver the profitability, safety and service
levels demanded by today's competitive transportation environments.
Based in Minneapolis, Minnesota, XATA revolutionized the trucking
industry by being the first to introduce electronic driver logs and
exception-based management reporting with automatic fleet
information updates, giving our customers access to vehicle data,
anywhere, anytime. Cautionary note regarding forward-looking
statements. This announcement includes forward-looking statements.
Statements that are not historical or current facts, including
statements about beliefs and expectations, are forward-looking
statements. Such statements are based on current expectations, and
actual results may differ materially. The forward-looking
statements in this announcement are subject to a number of risks
and uncertainties including, but not limited to, the possibility of
continuing operating losses, the ability to adapt to rapid
technological change, cost and difficulties we may face in
integrating the businesses of XATA and GeoLogic Solutions,
dependence on positioning systems and communication networks owned
and controlled by others, the receipt and fulfillment of new orders
for current products, the timely introduction and market acceptance
of new products, the ability to fund future research and
development activities, the ability to establish and maintain
strategic partner relationships, and the other factors discussed
under "Risk Factors" in Part IA, Item 1 of our Annual Report on
Form 10-K for the fiscal year ended September 30, 2008 (as updated
in our subsequent reports filed with the SEC). These reports are
available under the "Investors" section of our Web site at
http://www.xata.com/ and through the SEC Web site at
http://www.sec.gov/. Forward-looking statements speak only as of
the date they are made, and we undertake no obligation to update
them in light of new information or future events. DATASOURCE: XATA
CONTACT: Mark Ties, CFO of XATA Corporation, +1-952-707-5600, Web
Site: http://www.xata.com/
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