New RAC owners commit to telematics | Smart Highways Magazine: Industry News

New RAC owners commit to telematics

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The new co-owners of the RAC say they’re planning a long-term investment which continues the money spent on the Club’s technology, data and telematics platform to “augment the range and convenience of services to members and corporate clients.”

The Carlyle Group, CVC Capital Partners and GIC, Singapore’s sovereign wealth fund, are entering into a partnership with investment from CVC’s Strategic Opportunities Platform, established in response to what it says is “growing demand from large investors to be able to invest for the long term in stable, high quality businesses”.  This will be its first investment.

The RAC is the second-largest roadside assistance provider across the UK and has approximately 8.6 million members.

In a statement, it says CVC has a deep understanding of investing in businesses in the motoring services industry and believes there is a significant long-term growth opportunity, building on the RAC’s “existing strengths”.

Chris Woodhouse, CEO of the RAC, said, “We are really looking forward to working with CVC and our existing partner GIC as we enter the next phase of our development.  With their significant experience and long-term capital, we are confident that they are the perfect partners to further our success as one of the UK’s major roadside assistance providers.”

Marc Boughton, Managing Partner and Co-Head of the Strategic Opportunities Platform at CVC Capital Partners, commented, “The RAC is a very high quality, resilient business in a stable industry, with great customer service and a loyal membership base.  We look forward to workingwith GIC, a highly respected long-term investor and longstanding partner of CVC, to support the continued development of this great brand.  We and GIC recognise that this will take time and capital, and this is why the RAC is an ideal initial investment for this platform.”

This transaction is subject to customary regulatory approvals and is expected to close in early 2016.

 
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