Michelin has been an automotive technology leader for over a century, and now the tire manufacturer is moving into telematics with its acquisition of NexTraq, a U.S. provider of commercial fleet communications systems, announced today.

Based in the Atlanta area, NexTraq is a subsidiary of FleetCor Technologies, a global provider of fuel cards and workforce payment products.

NexTraq provides solutions for driver safety, fuel management and enhancing fleet productivity. Since its inception in 2000, NexTraq has become a leading provider of GPS fleet management solutions for fleets of small commercial vehicles (classes 3‒5) ranging from two to 50 vehicles.

“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans,” said Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America. “NexTraq represents a strategic acquisition that accelerates our growth in telematics with synergies that increase our scale, expand our geographic footprint and strengthen overall competitiveness in fleet management technology and services in the United States.”

NexTraq has 117 employees, approximately 7,000 fleet customers, and 116,000 individual subscribers. The unit will operate independently within Michelin North America.

“NexTraq has technology that, among other capabilities, monitors reckless driving and stops texting while driving. This capability is an excellent cultural fit with Michelin’s purpose and long-standing commitment to road safety,” Dimenna said.

The closing of the acquisition is subject to completion of certain customary conditions, including clearance under the Hart-Scott-Rodino Act.