UPS is to sell its small UPS Logistics Technologies unit to private equity investment firm ThomaBravo LLC for an undisclosed sum.
UPS Logistics Technologies, headquartered in Baltimore, employs about 145 people to createhigh-tech transportation routing and fleet management systems. More than 200,000 vehicles aremanaged through 3,300 installations worldwide representing a variety of industries. Specifictransportation management applications provide street-level route plans, real-time wirelessdispatch and GPS and strategic territory planning. Customers use the technology and tools foreffective fuel management and driver productivity.
Len Kennedy, vice president and COO of the unit, will become the chief executive officer afterthe acquisition, which is expected to close by December 31. When the acquisition is complete, UPSLogistics Technologies will transition its name to Roadnet Technologies, Inc. The Roadnet brand,which already identifies the company’s main products, is familiar to customers, value-addedresellers and vendors.
“UPS Logistics Technologies has a talented workforce that has proven its ability to developstand-alone technologies that help companies effectively manage their own fleets,” said DaveBarnes, UPS’s chief information officer. “Our decision to sell is based on UPS’s desire to focus onthe development of technology directly tied to our own global package and freight networks andcontract logistics services.”
The company was founded in 1983 as Roadnet Systems Corporation and was acquired by UPS in May1986. The sale to Thoma Bravo will in no way affect the full suite of transportation and logisticssolutions offered by UPS, including the transportation of packages and freight; the facilitation ofinternational trade, and the deployment of advanced technology to more efficiently manage customersupply chains.
“Thoma Bravo is excited to bring our expertise in growing application software solutionscompanies to Roadnet Technologies, Inc.,” said Holden Spaht, principal at Thoma Bravo. “As anindependent company supported by Thoma Bravo, Roadnet will be well positioned to enhance its suiteof software applications for distribution and services companies.”
“In partnership with the existing management team, we intend to accelerate the growth of Roadnetand strengthen the company’s leadership in the transportation management solutions market,” addedJeffrey Del Papa, Thoma Bravo vice president.
“With this investment, we have an unprecedented opportunity to drive our growth with marketexpansion and new product lines,” agreed Kennedy. “There are millions of vehicles in commercialfleets where technology has yet to be applied for route management, telematics and fleetmaintenance solutions.”
