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EX-10.5 - EX-10.5 - XRS Corp | c55044exv10w5.htm |
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EX-10.4 - EX-10.4 - XRS Corp | c55044exv10w4.htm |
EX-10.3 - EX-10.3 - XRS Corp | c55044exv10w3.htm |
EX-10.1 - EX-10.1 - XRS Corp | c55044exv10w1.htm |
EX-10.2 - EX-10.2 - XRS Corp | c55044exv10w2.htm |
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EXHIBIT 99.1
XATA Raises $30M in Financing, Acquires Turnpike Global
Friday, December 04, 2009
MINNEAPOLIS, December 4, 2009XATA Corporation (Nasdaq: XATA), today announced it has received $30
million in funding from Technology Crossover Ventures (TCV) and Trident Capital, and that it has
purchased Ontario Canada-based Turnpike Global Technologies (Turnpike) for $20 million in cash and
stock.
TCV is one of the largest venture capital firms focused solely on information technology,
with more than $7.7 billion under management. Its investment in XATA will facilitate the
acquisition of Turnpike and provide added capital to accelerate XATAs growth, eliminate debt and
strengthen its balance sheet. Trident Capitala longtime XATA investoris also participating in
the new investment.
XATA Corporation is a strategic portfolio company that brings strong technology and management
leadership and exemplifies the tremendous growth potential in the transportation management
market, said Woody Marshall, TCV general partner. We are pleased to invest in the company and we
look forward to working with the XATA team to further accelerate its expansion.
Purchasing Turnpike, a PDA-based fleet operations solutions provider, will allow XATA to continue
its growth strategy by expanding XATAs 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
Turnpikes product functionality meets specific customer needs. With the acquisition, XATA has
more than 100,000 systems deployed with over 1,400 customers across North America. The acquisition
will also expand XATAs product portfolio and expertise in the PDA market and distribution through
channel partners, such as Sprint and AT&T.
TCV has a strong reputation and history of success, said Jay Coughlan, president and CEO of XATA.
Our alignment with TCV and the acquisition of Turnpike are clear indicators of our intention to
aggressively move forward as a leading provider of Fleet Performance Management solutions. This
alignment also reinforces our strategy of continuing to consolidate the market through strategic
acquisitions. With the Turnpike acquisition, we significantly expand the markets we service, more
easily expand our hardware flexibility to PDAs and better fulfill our mission of serving the market
overall.
This is an exciting milestone for our company. XATA is a recognized leader of fleet optimization
solutions and the perfect company for us to scale our growth, said Brendan Staub, president and
chief executive officer of Turnpike. Jointly, we can go to market with solutions ranging from
self-explanatory products to totally integrated systems that will create exciting growth
opportunities for our customers and our employees.
Under the acquisition, Turnpike will operate as a division of XATA, with Turnpikes divisional
management reporting to the XATA executive team. Turnpikes fleet operation applications, such as
its end-to-end fuel tax process, are a perfect complement to XATAs XATANET Fleet Performance
Management solution.
About TCV
Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of growth capital to
technology companies, providing funds to later-stage private and public companies. With $7.7
billion in capital under management, TCV has made growth equity and recapitalization investments in
over 170 companies leading to 45 initial public offerings and more than 30 strategic sales or
mergers. Representative investments include Altiris, eHarmony, Expedia, Fandango, Liquidnet,
Netflix, RealNetworks, Redback Networks, Solect Technology, TechTarget, Travelport, Webroot, and
Zillow. TCV has 11 partners and is headquartered in Palo Alto, California. For more information
about TCV, visit www.tcv.com.
About Trident Capital
Trident Capital is a venture capital and private equity firm founded in 1993 by industry veterans.
Since then, the firm has grown to more than 20 investment professionals with $1.5 billion under
management invested in more than 150 companies. The firms active investment approach has helped
dozens of companies, such as MapQuest and iRobot, to realize successful exits. Trident specializes
in business services, information services and software, including technology-leveraged outsourcing
and processing for healthcare and insurance, marketing and sales, and enterprise software for
security, communications and mobility.
Tridents partners have over 100 years of collective operating experience, and bring extensive
industry knowledge and contacts to entrepreneurs and their teams to help them achieve the level of
success they deserve. Dedicated to building businesses with strong infrastructures and putting them
on the path to profitability, Trident works with innovative businesses to help them maximize their
growth potential.
About Turnpike Global Technologies
Based in Toronto, ON, Turnpike Global Technologies provides simple solutions to the transportation
industry that result in immediate cost savings. Turnpike has been recognized as the first company
in North America to fully automate, from end-to-end, the fuel and mileage tax process required by
the International Fuel Tax Agreement (IFTA). Its RouteTracker, a fleet management device, connects
directly to the engine diagnostic port of medium and heavy duty trucks to collect and report on
operational statistics, GPS position and automate compliance information. RouteTracker interacts
with various handheld devices using Bluetooth as a wireless in-cab communication medium. The
information collected by RouteTracker is made available to the end-user via web-based reporting.
RouteTracker installation takes an average of only 10 minutes per truck.
About XATA
XATA (NASDAQ:XATA) is the expert in optimizing fleet operations by reducing costs and ensuring
regulatory compliance for the trucking industry. Our on-demand software and services help companies
manage fleet operations, enhance driver safety and deliver a higher level of customer satisfaction.
Offered through a fee-based subscription service, XATA affordably oversees every truck in an
organizations fleet. XATA provides expert services to develop the business processes required to
deliver the profitability, safety and service levels demanded by todays competitive transportation
environments.
Based in Minneapolis, Minnesota, XATA revolutionized the trucking industry by being the first to
introduce electronic driver logs and exception-based management reporting with automatic fleet
information updates, giving our customers access to vehicle data, anywhere, anytime.
Cautionary note regarding forward-looking statements. This announcement includes forward-looking
statements. Statements that are not historical or current facts, including statements about
beliefs and expectations, are forward-looking statements. Such statements are based on current
expectations, and actual results may differ materially. The forward-looking statements in this
announcement are subject to a number of risks and uncertainties including, but not limited to, the
possibility of continuing operating losses, the ability to adapt to rapid technological change,
cost and difficulties we may face in integrating the businesses of XATA and GeoLogic Solutions,
dependence on positioning systems and communication networks owned and controlled by others, the
receipt and fulfillment of new orders for current products, the timely introduction and market
acceptance of new products, the ability to fund future research and development activities, the
ability to establish and maintain strategic partner relationships, and the other factors discussed
under Risk Factors in Part IA, Item 1 of our Annual Report on Form 10-K for the fiscal year ended
September 30, 2008 (as updated in our subsequent reports filed with the SEC). These reports are
available under the Investors section of our Web site at www.xata.com and through the SEC Web
site at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we
undertake no obligation to update them in light of new information or future events.