Novacap to Invest in Fleetmind

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FleetMind has signed a Letter of Interest with Novacap for an initial $5 million investment. With this investment, Novacap will be taking an equity position in Fleetmind to support the Company’s growth and expansion plans.

“This is only a first step. Novacap’s tradition is to support its partners in realizing their long-term goals,” said Pierre McMaster, General Partner at Novacap. “We see a great opportunity for FleetMind to build its leadership role."

FleetMind Solutions, Inc., the technology leader for fleet management solutions, today announced that it has signed a Letter of Interest with Novacap for an initial $5 million investment. With this investment, Novacap will be taking an equity position in Fleetmind to support the Company’s growth and expansion plans.

Novacap is one of Canada’s leading private equity firms with a strategic investment focus in the waste and recycling industry. Through this first investment, Novacap will be establishing a long-term partnership with FleetMind and will continue to support the Company’s growth objectives, either organically or through acquisitions.

FleetMind intends to use the proceeds to ramp up market penetration efforts on three key fronts:
1)    To convert FleetMind’s current licensing/purchase business model to a recurring service-oriented business model.
2)    To expand sales and distribution capabilities.
3)    To fund acquisition.

FleetMind’s current business model positions its solution as a capital expenditure (capex). In the current economic climate, capex budgets have been slashed and typically require longer purchasing cycles. As a recurring monthly service, FleetMind solutions will become an operational expenditure (opex) making it easier and faster for FleetMind’s customers to secure the required budgets and to reap the resulting return-on-investment (ROI) benefits.

“Novacap shares our vision of disrupting the status quo in the fleet management industry to gain a significant competitive advantage,” said Martin Demers, CEO of FleetMind. “With nearly 30 major customers encompassing more than 75 independent operating divisions across North America, we are just scratching the surface in terms of our market potential. We now need to make it easier for our target market to buy our solutions in a faster timeframe with a more convenient opex-centered business model. Converting to a service-oriented approach will lower the upfront costs for our customers and subsequently free up their capex-budgets for equipment purchases instead.”

“This is only a first step. Novacap’s tradition is to support its partners in realizing their long-term goals,” said Pierre McMaster, General Partner at Novacap. “We see a great opportunity for FleetMind to build its leadership role in the waste and recycling industry by making it easier for customers to buy their solutions, expanding their sales distribution venues and adding new capabilities to their offering through acquisition. Our interest in FleetMind is consistent with our strategy of taking a position in growth-focused, market-leading Information and Communication Technologies companies.”

FleetMind will be showcasing its fleet management solutions at the upcoming Waste Expo 2011 in Booth #2451, Dallas, Texas, May 10-12 at the Dallas Convention Center.

About Novacap
With over $950 million in assets under management, Novacap is one of Canada's largest private equity and venture capital firms. Since 1981, its partnership strategy has helped over 50 companies accelerate growth and maximize value. Novacap is one of North America's top private equity firms with first-quartile returns. Novacap targets dominant players in various industries that are looking to grow, either organically, by way of strategic alliances or through acquisitions. The Novacap team is characterized by an extensive operational and financial expertise in a variety of sectors. To learn more about Novacap, please consult the website http://www.novacap.ca.

About FleetMind
FleetMind Solutions, Inc. is the technology leader for fleet management solutions. FleetMind was founded in 1996 by bringing together leading-edge computer systems expertise for harsh, real-world environments with breakthrough research and development in telematics for heavy trucks. FleetMind designs, manufactures, and markets wireless enabled on-board computers, driver terminals and business automation software that extend the reach of our customer’s enterprise back-office systems all the way to the truck and driver. Our solutions have allowed some of the largest transportation and Waste Management fleets in North America to link their drivers and vehicles to business operations in real-time, delivering proven business results and a true competitive edge. FleetMind puts you in your driver’s seat. For more information, visit us at http://www.FleetMind.com.

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Martin Demers
FleetMind
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