Lytx announces majority investment from the Permira funds

Lytx and Permira, the global private equity firm, 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, a provider of video telematics solutions for commercial, public sector and field services fleets, in excess of $2.5 billion.

Founded in 1998, Lytx, which has a growing portfolio of more than 130 issued and pending patents, is one of the first companies to tap into “the combined power of machine vision, artificial intelligence, and big data” to help commercial fleets make informed business decisions, identify and remove driving risks, streamline operations, and better service their customers.

With over 120 billion miles of driving data, Lytx also 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. However, only an estimated one million commercial vehicles are currently leveraging data derived from video telematics technologies – less than 1% of the 125.6 million commercial vehicles globally, according to industry research firm Frost & Sullivan.

“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. 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. While Lytx has experienced rapid, double-digit growth in recent years, we’ve barely begun to scratch the surface of the addressable global market” – Brandon Nixon, CEO of Lytx.

“We have long admired Lytx and its management team as the clear market leader in this incredibly promising, high-growth sector. 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.” – Brian Ruder, Partner and Co-head of Technology at Permira.

Lytx’s current executive leadership team will remain in their roles following the close of the transaction, which is expected in the first quarter of 2020.