Trackunit Acquisition: Key Details, Impact, and What Comes Next

Hg's acquisition of Trackunit marks a significant milestone in the telematics and construction industries. By acquiring a controlling interest from Goldman Sachs and GRO Capital, Hg aims to leverage its expertise in software-as-a-service to enhance Trackunit's capabilities. This strategic move is poised to accelerate digital transformation and operational efficiency in the construction sector, benefiting stakeholders across the board.

What Is Trackunit?

Founded in 2003, Trackunit specializes in providing an operating platform designed to connect people, machines, and processes within the construction industry to eliminate downtime. Its core products include Trackunit IrisX, an operating data platform; Trackunit Manager, for asset management; Trackunit Go, for fleet management; and Trackunit On, which focuses on safety checks. Unique in the market, Trackunit offers advanced IoT telematics solutions and boasts the world's largest Bluetooth network for construction.

Who Acquired Trackunit?

Hg is a leading investor in European and transatlantic software and services businesses. With over 30 years of experience, Hg focuses on building enduring leaders by backing companies that advance digitization trends and transform workplaces. Their key services include investment and partnership, operational support, and access to a network of talent and knowledge. Recognized for their significant influence, Hg emphasizes responsible investing and supports business transformation through in-depth analysis and insights from expert teams.

When Was Trackunit Acquired?

Hg acquired Trackunit on March 24, 2021. This acquisition occurred during a pivotal moment for the construction industry, which is undergoing significant digital transformation. The sector is increasingly adopting SaaS solutions, with market reports indicating that these technologies have gained over 25% market share. This trend towards digitalization and connectivity underscores the strategic importance of Hg's investment in Trackunit, positioning the company to capitalize on the growing demand for advanced telematics and IoT solutions.

Why Was Trackunit Acquired?

• Market Expansion: The acquisition of Trackunit by Hg is strategically aimed at intensifying global expansion. With Hg's investment, Trackunit plans to scale its operations, strengthen its presence in Europe, and gain a foothold in Asia. This move is expected to broaden Trackunit's market reach within the construction industry.
• Technology Integration: Hg benefits significantly from Trackunit's advanced SaaS-based IoT solutions, which connect construction equipment and process data to the cloud. This integration enhances Hg's portfolio by adding specialized telematics technology, enabling real-time data analysis and preventive maintenance, thus driving further digitalization in the construction sector.
• Competitive Advantage: The acquisition strengthens Hg's competitive position by leveraging Trackunit's best-in-class telematics software and hardware solutions. Trackunit's ability to provide real-time, actionable insights and its established leadership in the off-highway vehicle market give Hg a significant edge over competitors, ensuring sustained growth and market leadership.

Acquisition Terms

• Acquisition Price: The specific acquisition price for Trackunit was not publicly disclosed. However, it is noted that HgCapital Trust plc will invest approximately £29.3 million in Trackunit.
• Payment Method: The payment method for the acquisition was not specified in the available information.
• Key Conditions or Agreements: The closing of the transaction is subject to customary regulatory requirements and approvals. Additionally, the transaction is expected to occur during Q2 2021, and the selling shareholders were advised by Goldman Sachs Investment Banking Division, Bruun & Hjejle, and White & Case.

Impact on Trackunit

The acquisition of Trackunit by Hg has brought notable changes to the company's operations and management. Hg's specialized SaaS expertise is expected to enhance Trackunit's capabilities, particularly in scaling its operations and accelerating its mission to eliminate downtime in construction. While the core management team remains committed to their mission, the new ownership aims to infuse fresh strategies and ambitions, driving the company towards more aggressive growth and innovation.

On the product and service front, the acquisition is set to bolster Trackunit's offerings significantly. Customers can anticipate enhanced investments in technology and new services, which will improve the overall user experience. The focus on scaling SaaS solutions for the construction industry means that Trackunit's clients will benefit from more robust and efficient telematics solutions. Employee reactions have not been explicitly detailed, but the positive outlook from the management suggests a supportive internal environment. Customers are expected to welcome these improvements, as they promise better support and advanced features.

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