Cox Automotive has acquired fleet maintenance and repair service provider FleetNet America for $100 million.
Cox, dealership technology and wholesale auction giant, said in a statement Tuesday that the acquisition will add a network of more than 60,000 independent service providers throughout the U.S., Canada and Puerto Rico to its business. The deal also includes FleetNet America's mobile app.
Cox said the acquisition will help its mission of supporting fleet flexibility, transparency and communication.
Together the companies will "deliver turnkey solutions backed by fleet experts and an expansive Service Provider network," the statement said.
"Empowered by our combined decadeslong legacy, best-in-class customers and service provider networks and industry expertise, we're disrupting the status quo and leading the fleet future — but not in the breakdown business — in the problem-solving business," said Steve Rowley, president of Cox Automotive.
The acquisition follows Rowley's reaffirmed commitment in an interview with Automotive News at the National Automobile Dealers Association show in January that the company is "always looking" for acquisition targets that enhance its current products and fill portfolio gaps.
FleetNet America was previously a subsidiary of ArcBest, an integrated logistics company. Judy R. McReynolds, ArcBest chairman, president and CEO, said the company decided to part with FleetNet America because "it is no longer core to our growth strategy."
FleetNet America provides brokering emergency mobile assistance, mobile truck repair, towing and recovery, preventative maintenance and tire repair.
The sale was effective Tuesday. Cox Automotive is a subsidiary of the privately held conglomerate Cox Enterprises.
