Tyre giant Michelin has acquired telematics company Masternaut for an undisclosed sum.

According to the companies, Masternaut will operate under its own brand as a fully-owned subsidiary of the French tyre company and the transaction is expected to close within the next 60 days.

The company provides solutions for fleet tracking and optimisation, driver behaviour improvement and digital transformation and claimed customers can save an average £600 a year per vehicle.

Michelin’s buyout of Masternaut comes a few months after arch-rival acquired TomTom Telematics and it is claimed the European telematics market is grow by 15% in the next five years.

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Masternaut said investment from Michelin will enable it to accelerate the development of its product and service offering to customers, particularly in data science, in areas such as predictive maintenance and operational re-engineering.

Florent Menegaux, managing partner of Michelin, said: “Michelin is consolidating its expertise in telematics, enabling us to optimise customer mobility and respond to the needs of a changing market. Masternaut represents a further step in the expansion of our Services & Solutions business, especially in Europe and for light vehicle fleets.”

Dhruv Parekh, CEO of Masternaut, said: “Over the last four years, I have been incredibly proud of what we have achieved. Masternaut Connect today is one of the fastest growing telematics platforms in Europe, with an industry-leading Net Promoter Score. Our investment in an enterprise-grade IoT platform has enabled us to launch new products in a scalable way. Together with the Michelin brand, we are well-positioned to expand in the connected vehicle industry across Europe. Operating within the Michelin Group accelerates our ability to achieve the vision of a connected world that is safer, cleaner and more productive.”