Lawsuit sheds light on aborted Omnitracs deal, shows that telematics provider may be in troubles
A federal lawsuit filed last week in the Central District of California against Vista Equity Partners, a private equity firm with more than $50 billion of assets under management, alleged that Omnitracs, a leading telematics provider for the transportation and logistics industry, is in dire financial straits.
Dr. Kurt Lauk, a former board member of Solera, which is owned by Vista, characterized Omnitracs as “failing,” writing that Vista “overpaid” for Omnitracs and was “unable to successfully and/or profitably run the company.”
Omnitracs’ chief executive officer, Ray Greer, disputed Lauk’s characterization of Omnitracs, calling him uninformed and said that his comments are not reflective of the company’s financial performance. Greer said that Omnitracs was growing faster than the industry and taking market share, enjoyed EBITDA margins “north of 30%,” and was continuing to invest in new cloud-based software products.
Greer did not provide numbers on net income or organic revenue growth and said that he could not comment on any pending transaction, whether an acquisition or potential sale.
As of publication time, Vista Equity Partners executives have not responded to a request for comment. According to Hampstead.
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Source and credits: freightwaves.com // iTrucker / Mario Pawlowski