Trak Global Group (TGG) is to acquire Intelligent Mechatronic Systems Inc (IMS) based near Toronto in Canada, but operating globally, for an undisclosed fee.
The deal will give Trak Global Group – which already provides the technology for almost 25% of usage-based insurance policies in the UK, as well as being Europe’s leading telematics supplier to the vehicle rental and mobility sector – significant and immediate scale in the North American market. The combined Group will connect over half a million vehicles and generate revenues of over $50m.
TGG CEO Nick Corrie, who will continue to lead the Group, said:
“This is a breakthrough deal for TGG, one which we fought hard to secure. It significantly accelerates our growth as a worldwide leader in data services for the connected car. We already operate in the UK, Continental Europe and the Middle East, but acquiring IMS gives us expanded capability globally plus extended scale and presence in the North American market, which will fuel further rapid growth.’’
He said: “IMS has a great reputation for class-leading solutions across North America as well as in Continental Europe where, like us, they partner with a number of blue-chip insurers and mobility providers. Their data science capabilities and Drivesync® Connected Car platform, which will be used across the Group, combined with our focus on building engaging customer propositions around cutting-edge technologies, means we are now one of the global leaders in the Internet of Mobility (IoM).”
The newly-expanded Group will comprise around 300 people, a third of whom are based in North America, providing services to a customer base which includes a long list of insurance and mobility companies as well as major vehicle manufacturers. The Group will realign all its international activities within connected insurance under the IMS brand, and its services to the mobility market under the Trak Global brand. Nick Corrie explained that “the highly complementary nature of the two businesses means there are also significant cost synergies and single platform efficiency gains that make the combination so compelling.”
Local operational responsibility for IMS will remainwith ‘’an incredibly capable, committed and experienced management team, he said, adding: “The R&D team at IMS is a centre of global excellence for innovation; it has created - and had granted - a number of significant and valuable patents that present lots of opportunities for the future, not just in insurance but across mobility in general.”
Corrie cited the examples of IMS’s patented mobile telemetry app and Road User Charging services, which will gain in importance as electric car adoption grows globally, and is being piloted in several US states before being enacted into law. “Owning IMS, and several patented applications of telematics, will enable TGG to shape and commercialise the infrastructure required as mobility across the world evolves and changes.
“Harnessing all the additional capabilities and scale that IMS brings is a highly significant milestone in our journey. We are all incredibly excited by the potential of the combined Group to increase our scale and prominence through 2019 and beyond.”
The IMS acquisition completed mid-December 2018.