Trimble Agrees to Acquire Transporeon for $2 Billion
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Trimble announced it has agreed to acquire Transporeon, a cloud-based transportation management software platform focused on connected supply chain infrastructure, in an all-cash transaction valued at $2 billion.
Trimble will acquire Ulm, Germany-based Transporeon, founded in 2000, from Hg, a leading software and services investor and current majority shareholder in the business.
Consistent with its cloud software model, Transporeon has a strong financial profile with recurring revenue representing over 90% of total revenue, with extremely low churn and net retention consistently in excess of 110%, Trimble reported. Transporeon will be immediately accretive to Trimble’s revenue growth and margin profile, and has generated profitable growth over the past 15-plus years, through various stages of the economic cycle.
Trimble to Acquire @transporeon_ to Strengthen and Accelerate Connect & Scale Strategy. https://t.co/GoyhgovJrg pic.twitter.com/Qpy40zDsKl — Trimble Inc. (@TrimbleCorpNews) December 12, 2022
Transporeon’s software platform provides modular applications that power a global network for 145,000 carriers and 1,400 shippers and load recipients, Trimble noted. Transporeon uses automation, real-time insights and network participation to help customers increase competitiveness, lower costs, reduce waste and solve complex freight problems.
Transporeon operates predominantly in Europe, as well as in developed markets across the Americas and Asia.
“Transporeon is a leading market player with a large [total addressable market], profitable growth and a platform focused on connected supply chain infrastructure, all of which are highly aligned with Trimble’s connect and scale strategy,” Trimble CEO Rob Painter said in a release.
Painter
“Under the leadership of Stephan Sieber and the talented management team, Transporeon has exhibited rapidly increasing network density and an accelerating customer adoption curve,” he added. “Its solutions are deeply integrated with carriers and shippers, and we are confident the platform will play an increasingly important role in the modernization of supply chains globally. We look forward to working together to enhance and expand on the company’s significant growth trajectory, and to offer enhanced transportation management systems [TMS] platform solutions to Transporeon customers in Europe and to Trimble customers in the North American market.”
The $2 billion purchase price is expected to be funded through a combination of cash on hand and new indebtedness. Trimble noted it is committed to maintaining an investment grade rating and expects to rapidly reduce its leverage by limiting additional acquisitions and temporarily suspending share buybacks.
The Transporeon business will be reported as part of Trimble’s transportation segment.
Hg announces sale of @transporeon_, a leading cloud-based transportation management software platform, to @TrimbleCorpNews in a transaction valuing the business at an enterprise value of €1.88 billion.
Read now: https://t.co/KLMQLfzIGo pic.twitter.com/dWstTcjTHZ — Hg (@HgCapital) December 13, 2022
The transaction is expected to close in the first half of next year.
In August, Transport Topics reported Trimble was accelerating its shift toward cloud computing to further connect data and workflows in the freight transportation industry and enable closer collaboration across the supply chain.
The trucking technology supplier outlined its plans to continue scaling up its Trimble Transportation Cloud platform in partnership with Microsoft during its 2022 Insight technology conference and expo, held Aug. 14-17.
Trimble has been investing heavily in upgrading its technology. Companywide, Trimble spent more than $536 million last year on research and development.
“We are out-investing the market in our R&D,” Painter said.
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