RS Fleet Installations, a leading installer of vehicle telematics devices for insurers, has announced that Beech Tree Private Equity will take a 50% stake in the business to support future growth.
Lea Hodson, managing director of the 200-strong West Midlands-based business, said: “We are delighted to announce this significant investment by Beech Tree Private Equity.
“We have been in business for 25 years, but the last two years has seen exponential growth, with 40% uplift during 2014 alone.
“This investment, which sees Beech Tree take a 50% stake in the business, will enable us to make further inroads into the UK fleet market, where we see significant opportunities, as well as expanding overseas, focusing at first on Europe and Asia.”
Hodson added: “In line with our longer term objectives, we also want to support our existing insurer customers and help them deliver their own growth plans in the telematics space.”
Hodson explained that while telematics devices were initially targeted at young drivers, insurers are now using them for a much broader customer base, to attract and retain customers by reducing premiums for good driver behaviour.
He said this was a key factor underpinning RS Fleet’s “phenomenal performance in recent months.”
He continued: “Our products and services have been well received by the market, and Beech Tree’s investment illustrates their confidence in our ability to exploit the numerous opportunities that exist in the UK and abroad.”
Paul Franks, managing partner of Beech Tree, who will join the RS Fleet Board, said: “We are delighted to be investing in RS Fleet at a time when telematics is coming of age in the motor market.
“The prospects for the business in this environment are very exciting and we look forward to supporting the management team to deliver their next phase of growth.”
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