Omnitracs to Buy XRS For $178 Million
SAN DIEGO, CA—Fleet tracking and communications provider Omnitracs announced it is buying fleet management software provider, XRS Corp.
Omnitracs will pay $5.60 per share, for a total of $178 million. Last year, Qualcomm sold Omnitracs to Vista Equity Partners for $800 million.
XRS delivers software solutions that help trucking companies manage their fleets, comply with regulations, and reduce operating costs. XRS has led the trucking industry's migration to mobile devices for collecting and analyzing compliance and management data.
Jay Coughland, chairman and CEO of XRS, commented: "With complementary solutions designed to meet the varying needs of fleets across the transportation and logistics industry spectrum, our combined organizations can continue to innovate and deliver end-to-end solutions for our customers."
John Graham, CEO of Omnitracs, added: "XRS has built a significant business focused on delivering transportation management solutions via mobile devices, and we believe this is a great addition to our suite of offerings."
Last December, Omnitracs acquired Roadnet Technologies, which provides fleet management software solutions to private fleets. Other previous acquisitions include Sylectus and FleetRisk Advisors, which is now Omnitracs Analytics.
The merger agreement was unanimously approved by the board of directors of XRS. The acquisition is subject to customary closing conditions, including shareholder approval. Omnitracs expects to complete the acquisition in the fourth quarter of 2014.