ELD, fleet management system maker Omnitracs buying competitor XRS for $178M
Omnitracs, a provider of fleet management systems to transportation and logistics companies, announced Sept. 2 that it has agreed to acquire XRS Corporation. Subject to the terms and conditions of the definitive agreement, Omnitracs will pay $5.60 per share of XRS, which equates to $178 million in equity value.
The merger agreement was unanimously approved by the board of directors of XRS. Omnitracs expects to complete the acquisition in the fourth quarter of 2014.
XRS Corp. delivers mobile software systems that it says help trucking companies manage their fleets, comply with regulations and reduce operating costs. Starting in 2011, XRS started to migrate its platform to mobile devices for collecting and analyzing compliance and management data.
Both Omnitracs and XRS have pioneered fleet management and compliance technology. According to the announcement, the combined company will continue to provide products and services that help fleets stay safe and improve productivity.
“This agreement to purchase XRS represents another milestone in the renewed growth of Omnitracs and further demonstrates our continued commitment to retaining and advancing our position as the leading software provider within the transportation and logistics industry,” said John Graham, CEO of Omnitracs. “XRS has built a significant business focused on delivering transportation management solutions via mobile devices, and we believe this is a great addition to our suite of offerings.”
“The acquisition delivers an attractive premium for our shareholders, and for our employees and customers we are thrilled to become a key component of the broader Omnitracs portfolio,” said Jay Coughlan, chairman and CEO of XRS.
In November, 2013, Vista Equity Partners acquired Omnitracs from Qualcomm. The next month, Omnitracs acquired Roadnet Technologies, a provider of fleet management software solutions to private fleets. Other previous acquisitions include Sylectus and FleetRisk Advisors, which is now Omnitracs Analytics.