With operations in five countries, Trak Global, collects and interprets data from connected devices to help organisations manage driver and vehicle risk
Capital market company Three Hills Capital Partners (THCP) is set to acquire a ‘significant’ minority stake in Trak Global Group (TGG), an England-based telematics insurance company, for more than £40m.
The investment from THCP comes less than a year after Trak Global’s acquisition of North American telematics provider IMS.
THCP UK’s Joe Jefferies said: “Trak Global is our first investment in the IoT and telematics space, and during our detailed diligence into the sector it quickly became clear that TGG was the stand-out performer.
“The combination of management team strength and vision, as well as the company’s relentless focus on forming true partnerships with their customers, made for a compelling investment case.”
Trak Global said that the proceeds from the minority investment will help it fast-track the development of new products and services through its IMS’ DriveSync 6 platform.
This, in turn will benefit the group’s clients in insurance, mobility, automotive OEMs and governments, said the telematics insurance company.
What Trak Global does
The company says it has long-standing partnerships with global insurers, mobility operators and motor manufacturers. Its operations are centred on collecting and interpreting data from connected devices to enable organisations manage driver and vehicle risk.
Trak Global’s customers include RSA, Volkswagen Financial Services, Nationwide Insurance (USA), Allianz and Zipcar.
The company also owns and operates UK-based telematics insurance broker Carrot Insurance, which developed Better Driver, an app-based product that represents the first mass-market usage-based insurance product in the country.
Apart from its partnerships with some of the well-known insurers, Trak Global says it has more than 130 patents related to connected car services. The company is said to have led the use of telematics technology for road usage charging in the US, with successful pilots in four states.
The telematics insurance company employs more than 250 people in four international offices.
Trak Global group CEO said: “This is a real milestone for TGG, as we celebrate a decade in business. In THCP we’ve found an investment partner that believes in our vision, is very well-aligned culturally and possesses the expertise to help steer the business through what will be an exciting phase of growth.
“THCP’s solution was unique in the market and matches our ambitions for the future. Worldwide, TGG already connects half a million vehicles and we are aiming to increase this figure exponentially over the coming years.”