The sale of Omnitracs, which is backed by Vista Equity Partners, has hit the second round, sources familiar with the process told Buyouts.
A handful of private equity firms, including Goldman Sachs, are bidding for the company, the people said. Strategics are also in the mix, sources said.
No longer involved are Carlyle Group, KKR and Leonard Green and Partners. The PE firms previously put in offers for the fleet-software company but are out of the “heavy sponsor-driven process,” the sources said. It’s unclear when second-round bids are due.
Omnitracs generated nearly $140 million in Ebitda and roughly $460 million in revenue, they said. It is expected to fetch $1.5 billion to $2 billion in the sale, the people said.
Evercore is advising Vista on the transaction.
Vista purchased Qualcomm’s fleet-management business for $800 million in November 2013, Buyouts reported. Vista moved the company to Dallas from San Diego. The technology-focused buyout shop tapped capital from Vista Equity Partners IV to fund the deal.
In 2013, Omnitracs generated about $372 million in annual revenue, from some 2,500 customers that provide products and services to help transportation companies manage their fleets, Buyouts said. Add-ons include Roadnet Technologies and XRS Corp. Omnitracs earlier this year acquired Blue Dot Solutions.
Robert Smith, Vista’s founder and chairman, said in June 2015 that Omnitracs was nearing a sale. That deal never closed. In June 2017, the Wall Street Journal reported that Vista had launched a formal sales process. That process did not result in a buyer, PitchBook said.
Omnitracs provides fleet-management software applications, information services and hardware platforms to help clients with safety and compliance, fuel efficiency, driver retention, and GPS fleet tracking, among other issues.
Vista Equity, Austin, manages $46 billion in capital and invests exclusively in software, data, and technology-enabled organizations. In October 2018, the firm collected $11.4 billion for its latest flagship fund, which is seeking to raise $16 billion, according to TWSJ.
Vista Equity, Goldman Sachs, KKR, Carlyle Group and Leonard Green did not return Buyouts’ requests for comment. Omnitracs declined comment.
Action Item: Contact Omnitracs CEO Ray Greer at +1 469-801-6664.