Published: February 18, 2015
Alternative investment manager buys Arvento, the world's fifth largest telematics business.
Investcorp, a Bahrain-based alternative asset manager, has acquired Turkish telematics company Arvento. The founders of the business will stay on as chief executive and chief technology officer, and retain a minority shareholdings.
Telematics is the science of transmitting information through networks via wireless communication technology. In Arvento's case, this involves providing software-as-a-service which gives fleet operators insight into their vehicles' location, fuel usage, speed, mileage and other measurements. The company is the largest telematics firm in Turkey and the fifth-largest in the world, with a growing presence in Saudi Arabia and the UAE.
Mohammed Al Shroogi, president of Investcorp's Gulf business, said of the deal: "[Arvento] is the second telematics business to have been acquired by Investcorp after FleetMatics, a business that we invested in 2008 and that has rapidly expanded under our ownership, eventually leading to a successful IPO on the NYSE in 2012. We see a lot of opportunity for Arvento as we bring our successful FleetMatics experience, capital and operational knowledge to the team to help the business diversify its offer and expand into new markets."
This is Investcorp's fourth acquisition in Turkey after meat processing firm Namet, high-end menswear retailer Orka Group and agricultural commodities supply chain manager Tiryaki Agro. The deal is expected to close in mid-March, Investcorp tells EMEA Finance.