Sensata Technologies, provider of solutions that create insight for customers, acquired Xirgo® Technologies Intermediate Holdings, LLC for $400 million. Xirgo is a telematics and data insight provider with annual revenue expected to exceed $100 million in 2021. Its projected revenue growth is in excess of 20% over the next several years.
Through its Smart & Connected initiative Sensata has developed modular solutions that collect data from wireless sensors or related vehicle systems information using a connected vehicle area network. This enables Sensata to deliver actionable insight to drivers, maintenance workers, and back-office personnel. Sensata delivers this insight through mobile applications, web portals, and via cloud APIs for integration into other enterprise systems. Sensata leverages its position in a diverse mix of sensors including tire pressure monitoring systems as well as vehicle know-how. It also leverages use cases within fleet operations to deliver these scalable offerings.
Additionally, the acquisition of Xirgo meaningfully advances Sensata’s Smart & Connected megatrend-focused growth initiative for transportation and logistics end-markets. For years Sensata has developed sensors for heavy- and light-duty vehicles used by fleet operators, having strengthened its offering with the 2014 acquisition of Schrader, including its embedded and wireless systems capabilities, as well as through the launch of its Smart & Connected vehicle area network initiative in 2018. The acquisition of Xirgo brings complementary capabilities and accelerates Sensata’s strategy to expand beyond OEMs and address broader fleet ecosystems. This includes telematics service providers, fleet management solution providers, and fleet operators themselves. As a result, Sensata’s total addressable market for its Smart & Connected product offerings will more than double to $15 billion by 2030.
WHAT XIRGO BRINGS TO THE TABLE
Since 2006, Xirgo has provided innovative wireless IoT communication devices for a wide range of applications across multiple markets. These markets include vehicle telematics, fleet management, asset tracking, usage-based driving, cold chain, and others. Xirgo delivers customized and modular device as well as cloud solutions. These solutions help its partners add capabilities to their portfolio to become more competitive and unlock new revenue streams. Most recently, Xirgo has also added full-stack sensing applications to its portfolio, including trailer cargo capacity and dash cam video. Xirgo also added data services including device management, APIs, and the ability to translate vehicle on-board diagnostics data.
Jeff Cote, Sensata Technologies CEO and president, says, “Xirgo is our first acquisition to expand our Smart & Connected growth vector, demonstrating progress against this large, fast-growing market opportunity. Xirgo establishes the foundation for our next phase of growth as we become a data insight provider for fleet managers.”
“We are excited to expand our solution offering and technical expertise by leveraging the tremendous talent that resides at Xirgo,” says Andrew Forti, vice president and general manager, Smart & Connected, Sensata Technologies. “We see this initiative as exponentially extending our Smart & Connected activities as we will be able to offer customers and ecosystem partners a broader value proposition to address their fleet management needs. With this acquisition, what started as an ambitious concept several years ago has transformed into a large, scalable, and meaningful growth platform for Sensata.”
Shawn Aleman, Xirgo cofounder and CEO, says the company has a record of delivering comprehensive and flexible solutions to customers. He adds that the diversity of Xirgo’s technology gives Sensata IoT solutions for fleets of all sizes.
Find out more, visit www.sensata.com.