Bridgestone boosts fleet portfolio with Azuga acquisition

Bridgestone Americas (Bridgestone) has reached an agreement with tech-focused private equity firm Sumeru Equity Partners, connected vehicle specialist Danlaw and other shareholders to purchase Azuga Holdings, Inc. (Azuga) and the Azuga fleet management platform for US$391 million. Bridgestone says the acquisition will accelerate its efforts to develop and deploy sustainable mobility solutions as a “central pillar of the company’s advanced mobility strategy.”

The transaction has been approved by each firm’s board of directors and is expected to close by the end of the third quarter. Pending customary closing conditions and regulatory approvals, Bridgestone will assume ownership of Azuga’s brands and business platforms. The Azuga fleet management platform, which includes advanced safety and fleet management tools, will complement the existing Bridgestone portfolio of cloud-based fleet mobility solutions.

Revolutionising how fleets do business

Bridgestone expects the acquisition of Azuga to “rapidly advance” its solutions for small to enterprise-sized fleets, providing real-time vehicle operations insights and data analytics that will “improve safety, increase efficiency and enhance customer service experiences.” Bridgestone shares that it will “leverage Azuga’s robust fleet data capture platform to advance the development of Bridgestone core tyre products and AI solutions.”

“Azuga is revolutionising the way that fleets do business in the US with class-leading software and a rapid innovation process that will further advance Bridgestone’s vision to be a sustainable solutions company,” comments Paolo Ferrari, Bridgestone Corporation’s global chief solutions business officer Bridgestone Americas’ president and chief executive officer. “We are working toward providing the most sustainable and intelligent solutions for safer and more efficient mobility, and Azuga will help us accelerate their development and deployment to our customers.”

Value creating solutions

Founded in 2012, Azuga has developed a sophisticated fleet management platform with GPS tracking, video telematics, driver behaviour management and accident reduction solutions for insurers. These solutions create value for fleets and insurers through improved safety on the road, as well as reduced fuel consumption and wear and tear on vehicles.

With more than 6,000 fleet business customers in North America, Azuga broadly supports organisations across industries including commercial fleets, insurance companies and government agencies. Azuga will maintain its headquarters in Silicon Valley. All Azuga employees and facilities across the USA and India will join Bridgestone upon the transaction’s completion.

“Bridgestone’s focus on building a more sustainable future through mobility technologies is well aligned with the mission of Azuga,” said Ananth Rani, chief executive officer of Azuga Holdings, Inc. “Together, our teams will continue the momentum we’ve already created, and accelerate our path toward providing the most advanced mobility solutions for our customers and society.”

Sumeru Equity Partners acquired a majority stake in Azuga three years ago. “Since our initial investment in 2018, Azuga has scaled rapidly to become a leader in the fleet management and mobility solutions market,” said Mark Haller, principal at Sumeru Equity Partners. “It has been a privilege to partner with the Azuga team over the last three years, and we look forward to watching Bridgestone and Azuga thrive together in the future.”

According to Bridgestone, the acquisition of Azuga continues its “evolution toward becoming a sustainable solutions company,” and builds upon the company’s recently announced investment in autonomous long-haul trucking company Kodiak Robotics.

PJT Partners is serving as financial advisor to Bridgestone, and Hogan Lovells is serving as legal counsel. Barclays is serving as financial advisor to Azuga, and Gibson Dunn as legal counsel.