Omnitracs LLC, a provider of fleet management solutions to transportation and logistics companies, announced September 2 that it has agreed to acquire XRS Corporation, a supplier of mobile fleet optimization software. Subject to the terms and conditions of the definitive agreement, Omnitracs will pay $5.60 per share of XRS, which equates to $178 million in equity value.
XRS Corp delivers software solutions that help trucking companies manage their fleets, comply with regulations, and reduce operating costs. XRS has helped lead the trucking industry's migration to mobile devices for collecting and analyzing compliance and management data.
"This agreement to purchase XRS represents another milestone in the renewed growth of Omnitracs and further demonstrates our continued commitment to retaining and advancing our position as the leading software provider within the transportation and logistics industry," said John Graham, chief executive officer of Omnitracs. "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. Whether building on the strength of our core technology or expanding our portfolio, we continually seek opportunities to drive innovation and deliver long-term value to our current and future customers."
Jay Coughlan, chairman and chief executive officer of XRS, said: "The acquisition delivers an attractive premium for our shareholders, and for our employees and customers. We are thrilled to become a key component of the broader Omnitracs portfolio. 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."
In December 2013, Omnitracs acquired Roadnet Technologies, a leading provider of fleet management software solutions to private fleets. Other previous acquisitions include Sylectus and FleetRisk Advisors, which is now Omnitracs Analytics.
Omnitracs expects to complete the acquisition in the fourth quarter of 2014.