FleetMatics’ IPO to raise $100m

Irish-headquartered fleet management system FleetMatics is set to raise $100m (€80.5m) with an initial public offer (IPO) according to documents filed with the US securities and exchange commission.

The company, with offices in Dublin, Cork, and across America, helps monitor and improve the productivity of fleets of vehicles.

The documents state: “FleetMatics is a leading global provider of fleet management solutions delivered as software-as-a-service, or SaaS. Our mobile software platform enables businesses to meet the challenges associated with managing their local fleets of commercial vehicles and improve productivity by extracting actionable business intelligence from vehicle and driver behavioural data.”

Fleetmatics, which was founded in 2004 in Dublin following a combination of two fleet management firms, WebSoft and Moviltec, is not allowed to comment on the IPO.

The documents provide details of how the company plan to spend the money it will raise from the IPO on expanding the company internationally.

“One of our key initiatives is to expand our business internationally, primarily in Europe in the near term, and we expect to hire additional personnel as we pursue this expansion.

“We may also complete strategic acquisitions to help us expand our sales and operations internationally,” the securities and exchange documents state.

The company completed the acquisition of SageQuest to help it grow its global market share in 2010. FleetMatics is not ruling out making further acquisitions to help grow their sales and operations internationally.

FleetMatics has posted strong growth over the last few years. It has increased the number of full-time employees from 187 at Dec 31, 2009, to 290 at Dec 31, 2010; to 408 at Dec 31, 2011; and to 446 at Jun 30, 2012.

The revenue from subscriptions has also increased from $46.1m in 2009 to $64.7m in 2010 and to $92.3m in 2011 and increased from $42.6m in the six months ended Jun 30, 2011, to $58.4m in the six months ended Jun 30, 2012.

FleetMatics is also beginning to examine ways of monetising the data it has collected through its monitoring.

The company intends to explore opportunities to capitalise on the approximately 30m data points per day it accumulates from its customers’ vehicles as it seeks ways to monetise this valuable information.