Tyre manufacturer Michelin is to purchase telematics provider Masternaut to boost its range of fleet solutions for customers.
Masternaut is one of Europe’s leading telematics companies, managing approximately 220,000 vehicles globally.
Founded in 1996, Masternaut is the third telematics provider Michelin has bought in five years, following Sascar of Brazil in 2014 and the US-based Nextraq in 2017. In December, Michelin came close to purchasing TomTom but narrowly lost out to rival tyre manufacturer Bridgestone.
Europe’s telematics market is expected to see rapid growth of up to 15% over the next five years, according to industry analyst Berg Insight, but that was not the only reason for the purchase. Michelin, and other tyre manufacturers, are keen to acquire telematics companies as it allows them to offer more comprehensive aftermarket fleet solutions packages.
Michelin managing partner Florent Menegaux said: “Michelin is consolidating its expertise in telematics, enabling it to optimise customer mobility and respond to the needs of a changing market. Masternaut represents a step in the expansion of our services and solutions business, especially in Europe and for light vehicle fleets.”
The French company said it will invest heavily in Masternaut’s product development, particularly in data science, predictive maintenance and operational re-engineering. It will use its global reach to support Masternaut’s expansion outside its heartland of Europe.
Masternaut CEO Dhruv Parekh (pictured) said: “Masternaut Connect is one of the fastest-growing telematics platforms in Europe, with an industry-leading Net Promoter Score. Our investment in an enterprise-grade IoT platform has enabled us to launch products in a scalable way.”
Masternaut will continue to operate under its own brand as a fully-owned subsidiary within Michelin. The transaction is expected to complete in the next 60 days.
