Fleetio, a software company that helps companies manage their fleets, has raised $450 million in late-stage venture funding to fund its acquisition of maintenance authorization platform Auto Integrate.
The deal values the combined business at more than $1.5 billion. The round was co-led by existing Fleetio investor Elephant VC and new sponsor Goldman Sachs Alternatives.
The combined company will service more than 8 million vehicles and process more than 13 million repair orders annually through its network of more than 110,000 repair shops in the United States, Canada and Mexico.
“We understand how challenging it is to manage a fleet,” Fleetio CEO John Michin said in an interview. “For many of our customers, it’s one of the biggest expenses, other than fuel.”
According to Michin, thanks to this acquisition, fleet managers will no longer need to call repair shops directly to arrange vehicle maintenance, adding that “a phone call can take 20 to 30 minutes for a single repair.”
Fleetio and Auto Integrate have been collaborating since 2019. The agreement will allow the companies to create a single digital platform.
The company said it plans to develop artificial intelligence and machine learning tools that can automate tasks such as manual data entry and alert businesses to the need to eliminate anomalies and overspend.
Michin will manage the combined business, and Auto Integrate CEO Terry Bartlett will join the combined firm's leadership team.
Source: Bloomberg
