TMW Systems Acquires Fleet Management Software Rival TMT Software
June 4, 2007 Timothy Prickett Morgan
TMW Systems, which has a set of truck dispatch and fleet management software for i5/OS and Windows platforms, has continued on its acquisition strategy. Last fall, TMW Systems bought one of its rivals, Maddocks Systems, and last week the company bought another rival, TMT Software.
TMW Systems was quietly acquired by two private equity firms, Wachovia Capital Partners and Peppertree Capital Management, back in September 2005, and this is where the company is getting its capital to make acquisitions. Wachovia Capital Partners is the equity investment arm of Wachovia, the fourth largest bank in America, and Peppertree is a private equity firm from Cleveland, Ohio, that was created in 2005 to bring $100 million in outside investment dollars into Ohio.
The terms of the TMT Software acquisition were not disclosed, since TMW Systems is not a public company and does not have to say diddly-squat about its financials to anyone but its private equity investors. But the company did say in a statement that TMT Software was the leading provider of fleet maintenance software and that with the acquisition, TMW Systems would have 1,500 customers and annual sales in excess of $56 million. The two companies already shared 235 customers, with TMW Systems providing fleet management software and TMT Software providing fleet maintenance applications. TMT Software had 550 customers of its own and they managed an aggregate of 1.1 million pieces of equipment.
Significantly, TMW Systems said that it would continue to sell and invest in both of its Transman product lines–one for Windows platforms and the other for OS/400 and i5/OS platforms. In the wake of the acquisition, TMW Systems said that it would extend its lifetime support policy for its own applications to the two Transman product lines, which means that so long as a customer is paying for maintenance on any release of either of the two Transman products, TMW Systems will provide patches and tech support to those customers.
TMW Systems’ products are used by over 1,100 customers worldwide, with most of its customers in the United States, Canada, Europe, China, and Latin America; these customers manage over 225,000 trucks using the company’s TMWSuite, TruckMate or TL2000 software (the latter runs on the i5/OS platform, the other two on Windows). TMT Software’s 550 customers were located mainly in the United States, Canada, and Mexico.
TMW Systems also put out some teaser data on how its first quarter went. The company said that, not including the TMT Software acquisition, sales were up 35.6 percent in the first quarter, with software license sales up 52.2 percent–thanks in large part to the earlier Maddocks acquisition.