Ingersoll-Rand plc (NYSE; IR) has reached a deal to acquire GPSi Holdings LLC from Falconhead Capital. The deal expands Ingersoll-Rand's presence in the connected vehcicles segment.
GPSi, located in Sarasota, Florida, makes GPS device and real-time engine diagnostic systems. The target has additional offices in Austin, Texas and East Sussex, England. Ingersoll-Rand is a Dublin-based diversified manufacturer that produces golf carts and industrial heating and air conditioning systems under the Club Car and Thermo King brands.
“With GPSi, we are well positioned to help customers maximize the value of their fleets, and to capitalize on the multi-billion dollar market for intelligent mobile assets across trucking, resort, golf, education, rental and other industries," says Ingersoll-Rand executive vice president Dave Regnery. Financial terms were not disclosed. Piper Jaffray & Co. (NYSE: PJC) and Weil Gotshal & Manges LLP are advising GPSi.
Falconhead is a New York-based private equity firm that nvests up to $100 million per transaction. In 2017, the private equity firm and M3 Outdoor Investments teamed up to purchase Kwik Tek Inc., a supplier of outdoor branded products for the water and winter sports industries.
Strategic buyers have been looking to grow in the auto tech industry. Delphi Automotive Plc (NYSE: DLPH) has agreed to acquire auto technology company nuTonomy; Renesas Electronics Corp. bought Intersil. In 2016, Verizon Communications Inc. (NYSE: VZ) acquired Fleetmaticsand Samsung Electronics Co. purchased Harman.