GTCR, Clearlake eye $2.5 bln-plus in sale of Lytx

GTCR and Clearlake Capital-backed Lytx, a video telematics provider, is looking for a new buyer, four sources familiar with the process told Buyouts.

The company received inbound purchase inquiries from financial sponsors and strategics, one of the sources said. The formal process is in final stages, another source, one of four, said.

After receiving inbound interest, PE investors are expecting to fetch between $2.5 billion and $2.9 billion in Lytx’s sale, the first source said. A more realistic check size for the company would hover between $1.5 billion and $2.5 billion, two sources said.

Rothschild & Co is advising Lytx on its sale, the people said.

Lytx, based in San Diego, California, designs, manufactures and sells video telematics equipment and technology used by commercial and public sector fleets. The company aims to increase driver safety and improve operational efficiency through real-time fleet tracking enabled by cloud-connected dash cams and sensors.

Lytx produced $150 million Ebitda and $279 million in revenue, the people said.

The company was founded in 1998 under the name DriveCam. In 2013, it was renamed as Lytx.

In 2016, GTCR acquired the company led by the CEO and chairman Brandon Nixon. Clearlake came in as an equal investor two years later, in 2018, with an acquisition of a 50 percent stake in the company.

As a more recent investor, Clearlake may opt out from selling its part in Lytx, basing its decision on the final bid’s price and return opportunity, two people said.

Other software-enabled companies in the fleet mobility space have also been reaching significant valuations.

In April, KeepTruckin, a VC-backed developer of hardware and software that helps truck drivers manage their vehicles and cargo, raised $149 million in Series D funding. The round valued the business at $1.25 billion, Shoaib Makani, KeepTruckin’s co-founder and CEO, told TechCrunch at the time.

In May, Vista Equity was looking to sell fleet-management software provider Omnitracts, valuing the company at nearly $2 billion, Buyouts reported at the time, citing sources. The process did not result in a sale, sources told Buyouts later.

GTCR and Clearlake declined to comment for the story. Rothschild and Lytx did not return Buyouts’ requests for comments.

Action Item: View GTCR’s latest form ADV here.