SAN DIEGO, Calif., Sept. 12, 2019 /PRNewswire/ -- SmartDrive Systems, Inc. ("SmartDrive"), a leader in video-based safety telematics and transportation intelligence, has secured $90 million in financing, with TPG Sixth Street Partners leading the investment with participation from existing investors.
Established in 2005, SmartDrive is a pioneer and recognized innovator in video-based safety telematics, backed by leading financial and strategic investors including NewView Capital, Oak Investment Partners, WABCO, and Michelin, in addition to TPG Sixth Street Partners. The company's platform captures vast amounts of data across vehicle systems to provide critical context and insights to commercial fleet operators, leading to improved driver performance, safety and compliance. SmartDrive's advanced data-driven safety programs can be tailored to address the needs of a wide range of fleets, delivering lower collision and fuel costs, resulting in a compelling value proposition and clear ROI.
"This is an exciting time at SmartDrive and in the transportation sector overall as adoption of video-based telematics continues to accelerate," stated Steve Mitgang, SmartDrive CEO. "Building on our pioneering video-based safety program, our vision of an open platform powering best-of-breed video, compliance and telematics applications is garnering significant traction across a diverse range of fleets given the benefits of choice, flexibility and a lower total cost of ownership. The investment from TPG Sixth Street Partners and our existing investors will fuel continued innovation in areas such as computer vision and AI, while also enhancing sales and marketing initiatives and further international expansion."
SmartDrive continues to experience rapid growth, reflecting how video-based telematics delivered via an open, extensible platform is a priority for fleets. The company has a proven track-record of innovation in telematics – including industry-firsts like multi-camera 360-degree views, extended recording, U-turn triggering, and use of analytics to enhance driver rewards influencing safety, fuel and retention. Fleets leveraging the SmartDrive® program consistently achieve driver retention rates of 70% or higher and 9 miles per gallon (mpg), significantly exceeding industry averages of 20% driver retention and 6 mpg. As evidence of market momentum, SmartDrive's contracted units grew 48% and revenue grew 44% for the first half 2019 compared to the same period in the prior year.
"SmartDrive is a market leader in the large and expanding transportation safety and intelligence sector and we are pleased to be investing in a growing company led by such a talented team," noted Bo Stanley, partner and co-head of the Capital Solutions business at TPG Sixth Street Partners. "SmartDrive's proprietary data analytics platform and strong subscriber base put it in a great position to continue to capitalize on its track record of innovation and the broader secular trend of higher demand for safer and smarter transportation."
PJT Partners served as exclusive financial advisor and placement agent and Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to SmartDrive in connection with the financing. Sidley Austin LLP acted as legal counsel for TPG Sixth Street Partners.
SmartDrive Systems gives fleets and drivers unprecedented driving performance insight and analysis, helping save fuel, expenses and lives. Its video safety, predictive analytics, telematics, compliance and personalized performance program helps fleets improve driving skills, lower operating costs and deliver significant ROI. With an easy-to-use managed service, fleets and drivers can access and self-manage driving performance anytime, anywhere. The company, which has been ranked as one of the fastest growing companies by Deloitte's Technology Fast 500™ for five consecutive years, has recorded over 15 billion miles and compiled the world's largest storehouse of more than 250 million analyzed risky-driving events. SmartDrive is based in San Diego, Calif., and employs over 725 people worldwide.
About TPG Sixth Street Partners
TPG Sixth Street Partners is a global finance and investment business with over $32 billion in assets under management. The firm's TSSP Capital Solutions (TCS) platform provides customized, non-control private capital for growth-oriented companies. Co-founded in 2009 by Managing Partner Alan Waxman and Sixth Street's management team, the firm's long-term oriented, highly flexible capital base allows it to invest across industries, geographies, capital structures and asset classes. TPG Sixth Street Partners is in a strategic partnership with TPG, the global alternative asset firm. For more information, visit www.tssp.com.
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SOURCE SmartDrive Systems