Xata Corp. announced last month that it received $30 million in funding from Technology Crossover Ventures (TCV) and Trident Capital, and that it purchased Ontario, Canada-based Turnpike Global Technologies (Turnpike) for $20 million in cash and stock. Under the acquisition, Turnpike will operate as a division of Xata, with Turnpike’s divisional management reporting to the Xata executive team.
TCV is one of the largest venture capital firms focused solely on information technology, with more than $7.7 billion under management. The investment in Xata facilitated the acquisition of Turnpike and provided added capital to accelerate Xata’s growth, eliminate debt and strengthen its balance sheet, the company says. Trident Capital — a longtime Xata investor — also participated in the new investment.
Purchasing Turnpike, a PDA-based fleet operations solutions provider, allows Xata to continue its growth strategy by expanding its 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 more than 1,400 customers across North America. The acquisition also expands Xata’s product portfolio and expertise in the PDA market and distribution through channel partners, such as Sprint and AT&T.