Trimble (NASDAQ: TRMB) and Platform Science have announced an agreement for Platform Science to acquire Trimble’s global transportation telematics business units.
As part of the agreement announced Sunday, Trimble will become a shareholder in Platform Science’s expanded business and hold a 32.5% stake. The transaction is expected to close in the first half of 2025.
In a press release, the companies said the deal aims to improve driver experience, fleet safety, efficiency and compliance. Customers will gain access to a wider range of applications and offerings through a combination of the two companies’ in-cab commercial vehicle ecosystems.
“We believe combining our global transportation telematics portfolio with Platform Science’s will further advance fleet mobility and provide our customers with a broader portfolio of solutions to solve industry problems,” said Rob Painter, president and CEO of Trimble, in a statement.
“This partnership marks the inflection point for a true platform approach to transportation technology. Now, powered by OEM-native software services, we will deliver unprecedented choice,” said Jack Kennedy, co-founder and CEO of Platform Science.
About the transaction
Upon the closing of the proposed transaction, Trimble will have a 32.5% stake in the newly expanded global Platform Science business and will receive a Platform Science board seat, according to the release.
Trimble joins C.R. England, Cummins, Daimler Truck, Paccar, Prologis, RyderVentures and Schneider as a key strategic investor in Platform Science along with financial investors 8VC, Activant Capital, BDT & MSD Partners, Softbank and NewRoad Capital Partners.
Trimble’s global telematics business units are reported within Trimble’s Transportation & Logistics reporting segment. On a trailing 12-month basis, the businesses generated approximately $300 million of revenue and approximately $30 million of operating profit. Annualized recurring revenue (ARR) for the businesses was approximately $200 million in the second quarter of 2024. The divestiture is expected to be accretive to Trimble’s organic revenue growth rate, organic ARR growth rate, gross margin and operating profit margin. For definitions of ARR and organic ARR, please see below under “Certain Performance Measures”.
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.
Trimble’s ownership in Platform Science is expected to be accounted for under the cost method of accounting.