Lytx and private equity firm Permira announced that a company backed by the Permira funds and co-investors have entered into a definitive agreement to acquire a majority stake in Lytx. The transaction values Lytx in excess of $2.5 billion, according to the announcement.
Lytx’s intelligent video telematics technologies help clients surface deeper insights that can transform their businesses, save hundreds of millions of dollars a year and protect the lives of more than one million commercial drivers by detecting such risks as distracted and unsafe driving, the company says.
“Permira is a leading technology investor globally and has a proven track record of helping companies build and grow their businesses over the long term,” says Lytx CEO Brandon Nixon. “With their expertise and the capital from this transaction, Lytx is poised to accelerate product innovation, make strategic acquisitions, expand globally and further lead the digital transformation of fleets worldwide.”
The market for video telematics remains virtually untapped. Only an estimated 1 million commercial vehicles are currently leveraging data derived from video telematics technologies — less than 1 percent of the 125.6 million commercial vehicles globally, according to Lytx citing industry research firm Frost & Sullivan.
“While Lytx has experienced rapid, double-digit growth in recent years, we’ve barely begun to scratch the surface of the addressable global market,” Nixon says.
“We have long admired Lytx and its management team as the clear market leader in this incredibly promising, high-growth sector,” says Brian Ruder, partner and co-head of technology at Permira. “In a field of more than 100 competitors, Lytx stands head and shoulders above the rest. We’re especially impressed by Lytx’s ability to aggressively set the pace for innovation, while maintaining positive EBITDA. We see numerous opportunities to leverage our cross-sector expertise in technology and industrials, as well as our global footprint, to accelerate Lytx’s already strong revenue growth domestically and internationally. We look forward to backing the company in its next growth phase.”
With over 120 billion miles of driving data, Lytx says it has the largest, fastest-growing proprietary database of commercial driving data to evolve its artificial intelligence algorithms. In addition, Lytx’s vast network of cloud-connected cameras is capable of surfacing insights on how vehicle types, road types, weather conditions, driver behavior, time of day, or a host of other factors can affect collisions, delivery schedules, fuel consumption, vehicle wear and tear and overall fleet operations.
“Lytx’s patented technologies, the scale of its network and its unrivaled and growing proprietary database make it the company that’s best positioned to not only win in today’s market, but also shepherd the advancement of autonomous vehicles,” Ruder says.
Lytx algorithms give commercial vehicles a vital tool to protect its drivers. Such innovations have helped Lytx’s clients reduce claims costs by 50 to 80 percent and optimize fleet operations in ways that yield between 3 and 6 times annual return on their investments, the company says.
