Investindustrial buys into Targa Telematics to value business at €200m


Investindustrial has sealed an investment in Italian smart mobility specialist Targa Telematics in a deal AltAssets understands values the business at about €200m.

The buyout house said its investment would focus on a long-term value creation by accelerating the international expansion Targa began in 2016.

Targa provides software ranging from insurance telematics for asset and fleet management to diagnostics and remote telemetry of vehicles.

It had revenues of about €40m last year in 2020 and 950 customers. The company supplies software to short and long-term vehicle rental companies, financial and insurance companies and large fleet managers such as construction companies and airport operators.

Andrea Bonomi, chairman of the industrial advisory board of Investindustrial, said, “Cutting-edge technologies such as those developed by Targa Telematics are recognized not only in Italy, but also abroad and make this company a leading international player that perfectly matches the quality profile of the companies in which Investindustrial usually invests.”

Investindustrial made the investment through its seventh flagship fund, which it closed at its €3.75bn hard cap in December 2019.

Last October Investindustrial teamed with sovereign wealth fund China Investment Corp and Italian bank UniCredit to launch a new fund aiming to help Italian businesses expand to China.

CIICF has €600m of initial capital underwritten by the three partners, and will seek to raise additional capital as and when required, a statement from the trio said.

Investindustrial is the sole investment manager of the new fund, and will make deals alongside Investindustrial VII, predominantly in leading Italian companies with Chinese development opportunity.

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