Dutch transportation management software provider FleetGo, backed by Main Capital Partners, is looking to make two acquisitions on average in the upcoming years, seeking to buy peers with complementary products, Sven van Berge Henegouwen, partner at the sponsor, told Mergermarket.

The company is interested in deals in France and the Nordics, and might consider ones in the UK or Spain at a later date. The goal of M&A is to expand the product offering as the company is interested in targets that offer fleet management services in areas adjacent to those of its own such as software solutions for fleet and transportation management, route optimization, and warehouse management, as well as fleet and trailer tracking and vehicle inspection, he said.

The sweet spot for target companies’ revenue is between EUR 3m and EUR 50m, he said.

FleetGo works with clients that operate large transportation fleets with a sizeable share being in the logistics transportation sector, including Dutch companies Rynart Logistics and Combex, Belgium’s KTO Transport and Logistics, as well as global player DHL. A certain share of the company’s clients come from non-transportation sectors as well, such as DPG Media, Callens Recycling, and industrial equipment supplier Prefaco, according to its website.

The company, which employs over 150, welcomes approaches from advisors with sell-side mandates, while it scouts for deals in-house and has a team of due diligence advisors in place, van Berge Henegouwen said.

Deals will be financed with cash and bank debt, and Main Capital equity participation might be considered as well, he said, declining to disclose financials. The company is open to approaches from banks for debt financing, he said.

The market for fleet transportation management is currently fragmented on a global basis but has already consolidated on a local and national level, the executive said.

FleetGo does not have any target revenue to reach with the help of M&A, and in its buy-and-build strategy it is oriented towards targets “with healthy profits and growth rates and those that show growth of recurring revenue,” he said, adding that the company aims to expand its product offering.

Previous acquisitions include domestic sector peer Data2Track taken over earlier this year, and Belgian software company EuroTracs purchased last year. Main Capital Partners invested in FleetGo in 2022. In that year the company was merged with German logistic software company Wanko, and the combined companies had expected revenues of EUR 20m at the time, as reported.

FleetGo offers software solutions for transport management, storage, route optimization, telematics, and fleet management, and has a strong presence in the DACH and Benelux region of Europe, according to a press release.