- New growth capital investment of over $50m USD will accelerate the development of new products and services via IMS’ DriveSync 6 platform, benefitting the Group’s clients across insurance, mobility, automotive OEMs and governments.
- Company confirms that its focus will be on supporting rapid growth in the North American territory; also considering further acquisition activity.
- IMS now the lead brand for the Group’s international business activities within the insurance market. The company provides complete end-to end services that insurers need in order to leverage the benefits of usage-based insurance (UBI) and extract value from telematics data across the entire value-chain, from customer acquisition and risk management through rewards, engagement and claims remediation.
London, UK: Trak Global Group [‘TGG’], one of the world’s leading telematics technology companies with operations in the UK, Europe and North America, has announced today that Three Hills Capital Partners [‘THCP’] is to acquire a significant minority stake in the business. The deal comes less than a year after TGG acquired IMS, one of North America’s three leading telematics solution providers.
The combined Group business has long-standing partnerships with global insurers, mobility operators and motor manufacturers, gathering and interpreting data from connected devices to help organizations manage driver and vehicle risk. Its customers include RSA, Volkswagen Financial Services, Nationwide Insurance (USA), Allianz, Europcar and Zipcar. The Group also owns and operates multi award-winning telematics insurance broker Carrot Insurance and TGG employs over 250 people across four international offices.
TGG Group CEO Nick Corrie said the partnership creates a capital structure that will “enable us to more rapidly execute our ambitious growth plans, both organic and by acquisition, to become the global leader providing connected, data-driven technology solutions for the insurance and shared mobility markets.”
Corrie stated that the investment from THCP will accelerate the deployment of the next generation of IMS’s cloud-based, device-agnostic single telematics platform, DriveSync 6, and enable the deployment of new solutions and services for customers. “We will also be continuing to invest in innovation, such as our pioneering work in Road Usage Charging in the US and developing IP around connected car services that our customers in UBI and mobility will jointly benefit from, particularly as we continue to see the convergence of these two markets.”
He added: “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.”
Joe Jefferies, UK coverage at THCP, who will join TGG’s Board, 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. We are delighted to be Trak Global’s partners in what we expect to be a period of exceptional and transformative growth. It is another example of Three Hills’ commitment to backing ambitious founders and management teams who are looking for an alternative solution to traditional private equity structures.”
About Trak Global Group (TGG)
Trak Global Group (TGG) is the UK-based holding company and owner of IMS (Insurance & Mobility Solutions), a global provider of connected car solutions, services, and analytics for insurers, mobility operators and governments, and Carrot Insurance (Carrot), a B2C telematics insurance broker in the UK and digital insurance platform available to insurers internationally. More info at www.trakglobalgroup.com
About IMS (Insurance & Mobility Solutions)
IMS (Insurance & Mobility Solutions), part of Trak Global Group (TGG), is a global provider of connected car solutions, services, and analytics to insurers, mobility operators, OEMs and governments. IMS is the developer of the cloud-based IMS DriveSync® connected car platform which has received industry acclaim for its ability to offer customers a data source-agnostic, multi-device strategy through which a multitude of B2B and B2C propositions to be taken to market. More info at www.ims.tech.
About Carrot Insurance (Carrot)
Carrot Insurance (Carrot) is a wholly-owned subsidiary of Trak Global Group (TGG). In the UK, Carrot is an award-winning B2C telematics insurance provider, but the underpinning platform has now been made available internationally to enable any organization seeking to take a UBI proposition to market to do so quickly and with a high degree of configurability. By using feedback, messaging and rewards to incentivize better driving behaviors, the Carrot approach is proven to help reduce claims frequency – this in turn reduces insurance premiums for policyholders, increases customer satisfaction, and drives carrier profitability. More info at www.carrotinsurance.com and www.ims.tech.
THCP is an innovative investment house delivering enhanced risk-adjusted returns to investors, by investing through preferred capital instruments.
THCP currently manages approximately €1.2 billion AUM. Since inception, THCP have invested approximately €750 million in successful mid-market companies across Europe, collectively valued at €3 billion of enterprise value at the time of initial investment.
THCP provides partnership capital and investment support to mid-market companies who want to invest in growth but avoid dilution of ownership and control. This appealing alternative to control-orientated private equity serves a gap in the financing market for the growing number of companies run by outstanding entrepreneurs looking to enter the next phase of growth with their businesses.
THCP portfolio companies include amongst others ACT, Byron, Building Energy, Hunter, Magnaghi Aeronautica, Recycling Lives, Sigma GRP, Tomorrow London and WPI Group.
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