The Bahrain-based global asset manager, Investcorp’s portfolio company ABAX has acquired Automile, Nordic region-based telematics and Internet of Things (IoT) services provider firm.
ABAX is one of the largest telematics solutions providers and the first in the Nordics. The current merger of Automile will leverage ABAX’s growth platform as well as strengthens the company’s global IoT network.
According to the company’s statement, the transaction has been completed by making the merger groups prominent players in the telematics industry with over 360,000 subscriptions.
The combined groups will be positioned as the second-largest telematics player in Europe in terms of the number of subscriptions and ABAX will be allowed to offer both new and existing customers a wide range of value-added connectivity services with huge geographic coverage.
“We backed ABAX to acquire Automile as the transaction enhances ABAX’s leadership position in the highly fragmented and growing telematics market, which we believe remains underpenetrated despite increased rates of adoption. ABAX has delivered consistent growth and we believe that the company is well-positioned for the future with a proven acquisition playbook in an expanding addressable market.”
Commenting on the acquisition, the Group CEO of ABAX, Morten Strand, stated that the current deal is a significant step for the company’s plan to further expand its operations in the Nordics, Europe and globally.
“Together with Automile, we will be at the forefront of innovation with the most modern, open, and advanced telematics platform. Our acquisition demonstrates confidence in the growth potential of the new combined entity, and we look forward to working together to accelerate our growth ambitions in the years to come,” Mr. Strand further added.
ABAX was founded in 2003 with a focus on GPS vehicle tracking. In 2017, the company was acquired by Investcorp to support its growth strategy by capitalizing on the fragmented and expanding market for telematics solutions.
ABAX represents Investcorp’s fourth investment in the region, with other notable investments including SageQuest and Fleetmatics.