Wsu Trimble Technology Lab 6398cc61d2a77

Trimble to acquire European TMS platform

Dec. 14, 2022
Transporeon, which has nearly 150,000 fleet customers across Europe, is being bought by the U.S.-based transportation management solutions provider in a nearly $2-billion deal.

Trimble is acquiring the transportation management software platform Transporeon, used by 145,000 fleets and 1,400 shippers in Europe. Transporeon customers move more than 25 million loads annually, valued at more than $50 billion.

Trimble is paying €1.88 billion ($1.99 billion) in cash for the company, whose majority shareholder is Hg, a software and services investment firm.

"Transporeon is a leading market player with a large TAM, profitable growth, and a platform focused on connected supply chain infrastructure, all of which are highly aligned with Trimble's Connect & Scale strategy," said Trimble CEO Rob Painter. 

Transporeon's open platform integrates with more than 3,000 global ERP and transportation management systems that support a network of 145,000 carriers and 1,400 shippers and recipients through an integrated suite of sourcing, planning, execution, monitoring, and settlement tools. 

The company, which has offices in a dozen European countries, said it helps customers increase competitiveness, lower costs, reduce waste and solve complex freight problems through automation, real-time insights, and network participation. Transporeon operates predominantly in Europe, as well as in developed markets across the Americas and Asia.

“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,” Painter said. “We look forward to working together to enhance and expand on the company's significant growth trajectory and to offer enhanced TMS platform solutions to Transporeon customers in Europe and to Trimble customers in the North American market."

Consistent with its cloud software model, Transporeon's recurring revenue represents more than 90% of total revenue, with "extremely low churn" and net retention consistently over 110%, according to a Trimble press release. 

"We have built a remarkable platform and sustained profitable growth to become a leader in this attractive market,” said Stephan Sieber, CEO of Transporeon. “This transaction will give us the runway to take what we have created to the next level by uniting our powerful European platform with Trimble's North American carrier-focused platform. I'm excited to be part of the Trimble team for this next phase of growth."

According to a Trimble message to shareholders, the all-cash purchase is expected to be funded through a combination of cash on hand and new indebtedness. In connection with the acquisition, Trimble obtained €1.88 billion ($1.99 billion) in committed financing, subject to customary conditions. Bank of America is the financing provider. Trimble stated 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. The transaction is expected to close in the first half of 2023, subject to customary closing conditions, including regulatory approvals.

About the Author

Josh Fisher | Editor-in-Chief

Editor-in-Chief Josh Fisher has been with FleetOwner since 2017, covering everything from modern fleet management to operational efficiency, artificial intelligence, autonomous trucking, regulations, and emerging transportation technology. He is based in Maryland. 

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...