The majority stake in traffic management firm Econolite has been bought by Bridgepoint and Porsche Automobile Holding - the owners of simulation and routing specialist PTV Group.
Econolite (mainly North America-based) and PTV (which operates mainly in Europe) will come together under a new holding company, subject to regulatory approvals, although their own brand names will continue to be used.
Carsten Kratz, partner and head of Dach (Germany, Austria and Switzerland) at Bridgepoint, will be head of the new entity's management board.
"Econolite and PTV fit well together from a geographic as well as from a product and service offering perspective," Kratz said.
"Econolite has a leading market position in intelligent traffic management in North America, PTV has a leading market position in mobility and logistics in Europe and other regions around the world. Going forward, the two partners will leverage their combined strength to further expand globally.”
PTV's CEO Christian Haas and CFO Johannes Klutz will also join the board, as will Econolite president & COO Abbas Mohaddes.
"The main focus of the holding will be end-to-end smart and sustainable traffic management solutions, driving innovation in safety-critical areas, ensuring the efficient mobility of multimodal travellers as well as optimising and preparing the supply chains for the challenges of the future," the companies say in a statement.
The deal will see PTV and Econolite "accelerate growth and expand their global reach beyond the current market scope encompassing more than 120 countries".
"The focus of the newly formed holding is to support the world in meeting safety, mobility, and environmental challenges and to develop data-driven systems that will help reduce traffic congestion, emissions and improve the safety of travellers as well as the efficiency of supply chains."
Mike Doyle, chairman and CEO of Econolite, added: “The overall objectives are developed to encompass and embrace the cultural and technological attributes of Econolite and PTV to address the global safety and mobility of the end users.
Mohaddes said the deal "offers great growth opportunities for all parties involved" while Haas said the companies were "ideally positioned to benefit from strong growth in the global market for smart, safe, and sustainable mobility solutions".
