Private equity firm GTCR has agreed to buy venture capital-backed Lytx for about $500 million in cash. Lytx sells subscription-based services aimed at helping fleet operators improve the behavior and safety of their drivers.

"Lytx provides us with an opportunity to participate in one of the fastest growing sub-sectors within the telematics space, video safety," says GTCR managing director Phil Canfield. Lytx is best known for its DriveCam brand, which combines the video capture of driving events, with personalized data-backed coaching insights, fleet tracking and fuel management to improve driver behaviors, enhance safety and reduce operational expenses.

“This new chapter will allow us to significantly expand the portfolio of services delivered to our growing installed base,” says Lytx CEO Brandon Nixon. Based in San Diego and founded in 1998, Lytx raised nearly $70 million from venture capital firms, including, Integral Capital Partners, Insight Venture Partners, JMI Equity, Menlo Ventures and Triangle Peak Partners. Morgan Stanley and Rothschild are advising Lytx. Evercore is advising GTCR.

The PE firm, based in Chicago, has been active lately. Earlier in 2016, the PE firm announced plans to reunite with pharmaceutical industry veteran Ed Fiorentino to launch TerSera Therapeutics. In 2015, GTCR-backed Cision agreed to buy PR Newswire; and GTCR said it will purchase Park Place Technologies. GTCR won Mergers & Acquisitions' 2013 M&A Mid-Market Private Equity Firm of the Year after raising its 11th fund with $3.85 billion in commitments.

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