“Permira is a leading technology investor globally and has a proven track record of helping companies build and grow their businesses over the long term,” said Brandon Nixon, CEO of Lytx.
“With their expertise and the capital from this transaction, Lytx is poised to accelerate product innovation, make strategic acquisitions, expand globally, and further lead the digital transformation of fleets worldwide.”
The market for video telematics remains virtually untapped. Only an estimated one million commercial vehicles are currently leveraging data derived from video telematics technologies – less than 1 percent of the 125.6 million commercial vehicles globally, according to industry research firm Frost & Sullivan.
“While Lytx has experienced rapid, double-digit growth in recent years, we’ve barely begun to scratch the surface of the addressable global market,” Nixon added.
“We have long admired Lytx and its management team as the clear market leader in this incredibly promising, high-growth sector,” said Brian Ruder, partner and co-head of technology at Permira.
“In a field of more than 100 competitors, Lytx stands head and shoulders above the rest. We’re especially impressed by Lytx’s ability to set the pace for innovation, while maintaining positive EBITDA. We look forward to backing the company in its next growth phase.”
Founded in 1998, Lytx has a portfolio of more than 130 issued and pending patents.
“Lytx’s patented technologies, the scale of its network, and its unrivaled and growing proprietary database make it the company that’s best positioned to not only win in today’s market, but also shepherd the advancement of autonomous vehicles,” Ruder said.
Among many other applications, Lytx’s machine vision and artificial intelligence technologies are used to combat distracted driving, which claims more than 3,100 lives a year in the U.S. and injures hundreds of thousands more. By detecting signs of distracted driving such as cell phone use and smoking with a high degree of accuracy, its algorithms give commercial vehicles a vital tool to protect its drivers.
Lytx’s current executive leadership team will remain in their roles following the close of the transaction, which is expected in the first quarter of 2020.
Permira is a global investment firm.