Kuwait - MENA Herald: Investcorp, a leading provider and manager of alternative investment products, today announced that it has completed the acquisition of ABAX Group (“ABAX” or the “Company”), an international market leader in the development and supply of vehicle tracking systems technology, from Norvestor VI L.P. for an enterprise value of approximately NOK 1.8 billion (equal to $210 million based on the current foreign exchange rate). The transaction is Investcorp’s fourth investment in the telematics sector globally and the fourth in Scandinavia in the past 18 months.
Founded in 2003, ABAX has become one of Europe’s fastest growing technology businesses and the leading telematics service provider in the Nordics by developing and delivering sophisticated fleet tracking, electronic triplogs, equipment and vehicle control systems and order management systems. Headquartered in Larvik, Norway, the Company has around 350 employees and established operations across the Nordic region as well as in Poland, the Netherlands, the United Kingdom and China. ABAX has over 200,000 active subscriptions for its service and 25,500 customers.
Investcorp plans to support ABAX’s international growth both organically and by add-on acquisitions, further expanding its customer base into new geographies as telematics solutions become increasingly relevant in the automotive industry. Operating in a sizeable, growing and highly fragmented market, Investcorp believes that ABAX is well positioned to leverage its prominent brand and reputation to continue to deliver a high quality of service to its customers backed by the additional operational experience Investcorp is able to bring to the Company.
Commenting on the investment, Yusef Al Yusef, Managing Director at Investcorp in Kuwait, said, “We think that ABAX is another great addition to Investcorp’s European portfolio. We have extensive technology experience, including three previous investments in the telematics space. We believe we have the right combination of financial as well as operational expertise to add real value and accelerate the growth of ABAX as it enters the next chapter in its history.”
Petter Quinsgaard, ABAX Chief Executive Officer, added, “Our conversations with Investcorp in the lead up to this agreement gave us great confidence that they will help us take the Company forward. We think that Investcorp’s track record in the Nordic region as well as their understanding of broader technology markets will provide us with the ideal support to expand our international reach in the telematics industry. Investcorp’s acquisition of ABAX demonstrates confidence in the growth potential of this Company and we look forward to working together to accelerate the Company’s growth in the years to come.”
Investcorp has established a market leading position of investing in the fast-growing fleet telematics sector having previously owned SageQuest and Fleetmatics which rapidly expanded under its ownership and successfully merged and listed on the New York Stock Exchange in 2012, creating the fastest growing global fleet tracking software provider, ultimately acquired by Verizon for $2.4 billion. Investcorp continues to see a strong technology deal pipeline with ABAX being its third investment in the technology sector in the last six months.
ABAX marks Investcorp’s fourth investment in Scandinavia in the last 18 months, having previously acquired Coresec, Sweden’s largest managed cyber security service provider; POC, a Stockholm-based revolutionary manufacturer of skiing and cycling helmets, gear and accessories; and Ageras, the Copenhagen-based online B2B marketplace for professional services.
