Platform Science, a leading provider of in-cab commercial vehicle ecosystems, has announced its acquisition of Trimble's global transportation telematics business units. This strategic move aims to drive the future of transportation technology by enhancing driver experience, fleet safety, efficiency, and compliance. As part of the agreement, Trimble will become a shareholder in Platform Science's expanded business, holding a 32.5% stake.
Trimble's global transportation telematics business units, which are reported within its transportation & logistics segment, generated approximately $300 million in revenue and $30 million in operating profit over the last twelve months. The annualized recurring revenue (ARR) for these businesses was approximately $200 million in the second quarter of 2024.
The proposed transaction is expected to be accretive to Trimble's organic revenue growth rate, organic ARR growth rate, gross margin, and operating profit margin. Notably, Trimble's other core transportation business units * enterprise, maps, vusion, and transporeon * are not included in the proposed transaction and will remain part of Trimble's transportation & logistics segment.
This acquisition is anticipated to close in the first half of 2025, subject to customary closing conditions and regulatory approvals. It represents an inflection point for a true platform approach to transportation technology, as stated by Jack Kennedy, Co-founder, and CEO of Platform Science.
Trimble's decision to join forces with Platform Science aligns with its vision to advance fleet mobility and provide customers with a broader portfolio of solutions to address industry challenges. The partnership is expected to create significant synergies and provide employees with opportunities for growth in a more competitive business environment. Following these announcements, the company's shares moved 3.5%, and are now trading at a price of $58.45. Check out the company's full 8-K submission here.
