Econolite and PTV Group join forces to capitalize on the growth potential of the global smart and sustainable mobility solutions market
KARLSRUHE, Germany & ANAHEIM, CA & STUTTGART, Germany & FRANKFURT, Germany–(BUSINESS WIRE)–Bridgepoint, the publicly traded private asset growth investor, and Porsche Automobile Holding SE (“Porsche SE”) today announced that they will back PTV Group (“PTV”), a world leader in simulation, planning and time management software as well as a provider of optimization solutions for transport logistics, in its partnership with Econolite, the North American leader in intelligent traffic management solutions. The two companies will join forces under the aegis of a newly formed holding company to provide hardware, software and services for the smart cities of the future: from planning and simulation to design, implementation, l operation, optimization and maintenance of intelligent mobility systems. The holding will serve as a platform for active innovation and consolidation in the market for smart and sustainable mobility solutions in order to capture the significant growth potential of the sector. As part of the transaction, Bridgepoint and Porsche SE will acquire a majority stake in Econolite. The partners have agreed not to disclose financial details of the transaction. The transaction is subject to regulatory approvals.
A new market leader in smart mobility
With over 85 years of experience in traffic management systems, Econolite is America’s leading provider of intelligent traffic management solutions. Econolite’s central traffic control software is used by over 400 agencies across North America, in over 150,000 traffic controllers, deployed at over 57,000 intersections. As a one-stop leader in traffic management systems, Econolite is committed and committed to the advancement of connected and autonomous vehicles, smart cities and cybersecurity. With more than 40 years of experience in the fields of mobility and logistics, PTV, based in Karlsruhe, provides software products based on proprietary algorithms. These range from microscopic and macroscopic modeling and traffic simulation to real-time traffic management, which benefit more than 2,500 cities and municipalities. In addition, PTV is one of the leading providers of software for the planning and optimization of logistics processes, especially in the field of route planning and route optimization.
Together, Econolite and PTV create a group with a market-leading position that now has a presence in over 120 countries and around 2,000 employees. PTV and Econolite will continue to serve customers in the global smart mobility and supply chain markets under their established brands. The goal of the new holding is to help the world meet safety, mobility and environmental challenges and to develop data-driven systems that will help reduce traffic congestion, emissions and improve traveler safety and the efficiency of supply chains. .
Analysts expect significant growth potential in the global mobility market. This newly created platform is ready and positioned to participate in this growth with its market reach, leveraged technologies and innovative market-driven solutions.
The operational management of the holding company will be made up of executives from both companies. CEO Christian U. Haas and CFO Johannes Klutz will join the PTV Board of Directors and President and COO Abbas Mohaddes will be named CEO of Econolite and will join the Econolite Board of Directors. Carsten Kratz, partner and head of DACH at Bridgepoint, will serve as head of the board.
Carsten Kratz, Partner and Head of DACH at Bridgepoint, said, “We are very pleased that Econolite and PTV are joining forces. Econolite and PTV go well together from a geographic perspective as well as from a product and service offering perspective. Econolite holds a leading position in the intelligent traffic management market in North America, PTV holds a leading position in the mobility and logistics market in Europe and other regions of the world. Going forward, both partners will leverage their combined strength to further expand globally.
Mike Doyle, President and CEO of Econolite, added: “The overall objectives are developed to encompass and embrace the cultural and technological attributes of Econolite and PTV to ensure the overall safety and mobility of end users. I am proud of the many innovations with which we have helped our customers and made drivers’ lives safer over the past decades. With PTV, we have found a strong and highly competent partner with whom we will continue to shape the smart mobility market in the decades to come with developments for the benefit of our customers and employees.
Abbas Mohaddes, President and COO of Econolite, added, “The partnership with PTV and Bridgepoint offers great growth opportunities for all parties involved. Thanks to the cooperation with PTV, we will be able to offer our customers around the world even more innovative, efficient and sustainable products and services in the field of intelligent mobility. This will benefit our customers, our brand, our employees and, most importantly, the traveling public who are the essence of establishing this partnership.
Christian U. Haas, CEO of PTV, added, “Econolite is a great company with an exceptionally strong position in the North American smart mobility solutions market. Together, we are uniquely positioned to benefit from the strong growth in the global market for smart, safe and sustainable mobility solutions with a true end-to-end offering to benefit our global customer base and fantastic employees.
Econolite and PTV were advised by Allen & Overy, Stradling (acting as legal advisors), Harris Williams, B. Riley (acting as M&A advisors), Ernst & Young (acting as financial/tax/operational advisors ) and the Boston Consulting Group (acting as a business advisor).
Econolite is the North American market leader with over 85 years of experience in intelligent traffic management solutions. Econolite has provided over 150,000 traffic controllers deployed at over 57,000 intersections. Its leading traffic management software has been installed by over 400 agencies across North America. Econolite prides itself on being the leading “one-stop-shop” provider of traffic management solutions across its four pillars: Cabinets, Controllers, Systems and Sensors. With nearly 1,000 employees primarily in North America, Econolite drives innovation in traffic management and safety solutions, including research and development of connected and automated vehicles.
PTV is one of the world’s leading providers of software for real-time traffic planning, simulation and management, as well as a provider of optimization solutions for transport logistics. With more than 40 years of experience in the fields of mobility and logistics, the Karlsruhe-based company provides software products based on proprietary algorithms ranging from microscopic and macroscopic traffic modeling and simulation to traffic management. real-time traffic, benefiting over 2,500 cities and municipalities. In addition, PTV is one of the leading companies providing software for the planning and optimization of logistics processes, especially in the field of route planning and route optimization. Bridgepoint acquired a majority stake in the company in February 2022 to further accelerate its growth with Porsche SE, which continues to hold a minority stake in PTV.
About Bridge Point
Bridgepoint Group PLC is the world’s leading listed private asset growth investor focused on the middle market with over €30 billion in assets under management and a local presence in the United States, Europe and China. Bridgepoint specializes in private equity and credit and invests globally in six core sectors: business services, consumer, financial services, healthcare, high-tech industries and technology.