Software Investor Hg Acquires Controlling Interest in Telematics Company Trackunit
Hg, a global software investor, has agreed to acquire a controlling interest in Trackunit from Goldman Sachs and GRO Capital. The addition of Hg as the new owner provides specialized software-as-a-service (SaaS) expertise at a time of increasing technology mobilization within the construction industry. Trackunit, a global leader in software-led telematics solutions for off-highway vehicles and the construction market, is now positioned to intensify its global expansion.
“GRO Capital and Goldman Sachs have been exceptional partners during the last five years and helped us solidify our mission and execute against it,” said Soeren Brogaard, CEO of Trackunit. “We are proud to have attracted investment from Hg, which comes at a tipping point for the digitalization of construction. Hg’s understanding, experience and focus on scaling leading SaaS companies provides Trackunit with a knowledgeable partner to consolidate and realize our ambitions in a growing global industry.”
Florian Wolff, partner at Hg, said: “Soeren and the team have led Trackunit to create a best-in-class, SaaS product for its ever-growing customer base. The business has become a key leader and long-term winner in what is a very interesting, global niche segment. We believe that the business has significant organic growth and attractive expansion opportunities ahead of it. We’re really excited about what we can achieve together.”
“Trackunit is a very high-quality business,” added Nick Jordan, partner at Hg. “We believe that Hg’s deep sector knowledge and operational expertise in the software and telematics space will add further support to this impressive track record. Our experience in internationalization, the evolution of software and data and the further development of sales channels will add up to an even greater experience for Trackunit’s customers, as well as an exciting growth trajectory for the business.”
Recent market reports from IDC Worldwide and McKinsey illustrate that SaaS has achieved more than 25 percent share of the market for software solutions in the construction sector. Moreover, the increase in connectivity is growing and will amplify the opportunity for SaaS solutions across a global market.
Trackunit is a driving force in the digitization of the construction sector, serving equipment manufacturers, rental companies and contractors, connecting construction equipment and processing data to the cloud to deliver value-added insights. With the new owners on board, the Trackunit team remains committed to solving the industry’s needs, but at a faster pace and with greater ambitions. Customers will benefit from additional investments in product, technology and new services.
Closing of the transaction is subject to customary regulatory requirements and approvals.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.