Trimble(NASDAQ: TRMB) has reached agreement to acquire PeopleNet in an effort to expand its presence in the transportation and logistics market. Terms were not disclosed.
The acquisition is the third significant purchase for the Sunnyvale, CA-based Trimble, following the purchase of Punch Telematics and Tata Automotive Mobility Technologies.
“PeopleNet is a key step in Trimble’s strategy for addressing the complex regulatory and operational demands of enterprise companies in the transportation and logistics (T&L) market,” said Steven W. Berglund, Trimble’s president and chief executive officer. “In combination with other recent initiatives, including the acquisitions of Punch Telematix and Tata Automotive Mobility Technologies, Trimble now offers a portfolio of proven solutions to a growing international customer base. These new initiatives are expected to contribute strong operating margins and high customer retention. PeopleNet’s management and employees will be the core of our Americas T&L business and we expect to provide seamless continuity to existing PeopleNet customers.”
The transaction is expected to close in the third quarter of 2011, subject to customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, Trimble said.
PeopleNet provides integrated onboard computing and mobile communication systems with approximately 1,500 truckload, LTL, private, and regional fleets using its products.
“The PeopleNet management team is enthusiastic about joining Trimble,” said Ron Konezny, founder and CEO of PeopleNet. “Trimble provides PeopleNet with significant additional scope that will allow us to build on our tradition of customer-driven innovation, and expand delivery of products and services by improving the performance and functionality of our existing and future offerings. The combination of PeopleNet’s product portfolio with Trimble’s broad technology base will allow us to create unique solutions that will enable our customers to manage their most important assets. We are confident the acquisition is a great fit, and with the continuity of our people, culture, and commitment to customer focus, we will continue to deliver best-of-class products and services.”
In a letter to customers, Konezny said that PeopleNet will “look forward to our new role heading up Trimble’s worldwide transportation and logistics vertical, and we are confident in the continuity of our people, culture, and commitment to customer focus.”
PeopleNet said its management team will stay on after the close of the sale.
Trimble offers location-based solutions through GPS, lasers, and optics, as well as software to meet specific needs of users.
