Press Release

Sensata Technologies signs definitive agreement to acquire Xirgo Technologies

Sensata Technologies, a leading industrial technology company and provider of sensor-rich solutions that create insight for customers, announced the acquisition of leading telematics and data insight provider, Xirgo® Technologies Intermediate Holdings, LLC for $400 million, or approximately 16.0x 2021 EBITDA. Xirgo’s annual revenue is expected to exceed $100 million in 2021 with projected revenue growth in excess of 20% over the next several years. The transaction is expected to be accretive to Sensata’s adjusted net income per share in 2021.

Through its Smart & Connected initiative Sensata has developed modular solutions that collect data from wireless sensors or related vehicle systems information using a connected vehicle area network. This enables Sensata to deliver actionable insight to drivers, maintenance workers and back-office personnel through mobile applications, web portals and via cloud APIs for integration into other enterprise systems. Sensata further leverages its leadership position in a diverse mix of sensors, including tire pressure monitoring systems, and know-how of vehicles and use cases within fleet operations to deliver these scalable offerings.

The acquisition of Xirgo meaningfully advances Sensata’s Smart & Connected megatrend-focused growth initiative for transportation and logistics end-markets. For years Sensata has been developing sensors for heavy- and light-duty vehicles used by fleet operators, having strengthened its offering with the 2014 acquisition of Schrader, including its embedded and wireless systems capabilities, as well as through the launch of its Smart & Connected vehicle area network initiative in 2018. The acquisition of Xirgo brings complementary capabilities and accelerates Sensata’s strategy to expand beyond OEMs and address the broader fleet ecosystem, including telematics service providers, fleet management solution providers and fleet operators themselves. As a result, Sensata’s total addressable market for its Smart & Connected product offerings will more than double to $15 billion by 2030.

Since 2006, Xirgo has provided innovative wireless IoT communication devices for a wide range of applications across multiple markets including vehicle telematics, fleet management, asset tracking, usage-based driving, cold chain, and others. Xirgo delivers customized and modular device and cloud solutions that help its partners add capabilities to their portfolio to become more competitive and unlock new revenue streams. Most recently, Xirgo has also added full-stack sensing applications to its portfolio, including trailer cargo capacity and dash cam video, along with data services including device management, APIs and the ability to translate vehicle on-board diagnostics data.

Commenting on the acquisition, Jeff Cote, Sensata Technologies CEO and President, said “Xirgo is our first acquisition to expand our Smart & Connected growth vector, demonstrating progress against this large, fast-growing market opportunity. Xirgo establishes the foundation for our next phase of growth as we become a data insight provider for fleet managers – giving them actionable data in the right place at the right time.”

“We are excited to expand our solution offering and technical expertise by leveraging the tremendous talent that resides at Xirgo,” said Andrew Forti, Vice President and General Manager, Smart & Connected, Sensata Technologies. “We see this initiative as exponentially extending our Smart & Connected activities, as we will be able to offer customers and ecosystem partners a broader value proposition to address their fleet management needs. With this acquisition, what started as an ambitious concept several years ago has transformed into a large, scalable and meaningful growth platform for Sensata.”

Shawn Aleman, Co-Founder and Chief Executive Officer at Xirgo Technologies, LLC, said “Xirgo has a proven track record of delivering enterprise class data insight and cloud platform services integrated with our broad portfolio of technologies to offer comprehensive yet flexible solutions for our customers. The diversity of our technology gives Sensata comprehensive IoT solutions for fleets of all classes and sizes as well as the opportunity to expand into new markets and verticals. I am thrilled to join the Sensata team at this stage of our growth, as we accelerate value creation for our customers and partners.”

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