MINNEAPOLIS - XATA Corporation announced it has received $30 million in funding from Technology Crossover Ventures (TCV) and Trident Capital, and has purchased Ontario, Canada-based Turnpike Global Technologies for $20 million in cash and stock.
TCV is one of the largest venture capital firms focused solely on information technology, with more than $7.7 billion under management. Its investment in XATA will facilitate the acquisition of Turnpike and provide added capital to accelerate XATA's growth, eliminate debt, and strengthen its balance sheet, according to XATA. Trident Capital-a longtime XATA investor-is also participating in the new investment.
Purchasing Turnpike, a PDA-based fleet operations solutions provider, will allow XATA to continue its growth strategy by expanding XATA's addressable market to include small and medium-size fleets in North America and key vertical markets, such as Less Than Truckload (LTL) and beverage, where Turnpike's product functionality meets specific customer needs. With the acquisition, XATA has more than 100,000 systems deployed with over 1,400 customers across North America. The acquisition will also expand XATA's product portfolio and expertise in the PDA market and distribution through channel partners, such as Sprint and AT&T.
Under the acquisition, Turnpike will operate as a division of XATA, with Turnpike's divisional management reporting to the XATA executive team. Turnpike's fleet operation applications, such as its end-to-end fuel tax process, are a perfect complement to XATA's XATANET Fleet Performance Management solution.