The AA has acquired SMR company Prestige Fleet Servicing for £11m as it intends to expand its offering to fleets and leasing companies in the coming years.
According to the breakdown giant – which claims to have a market share of more than 60% among the fleet sector – the buyout represents a “significant opportunity to grow new revenue streams without incurring significant capital expenditure.”
Services are delivered via a network of 400 garages with agreed labour rates. The process is automated through Prestige’s proprietary software platform, the AA added.
The AA said the acquisition is part of its B2B strategy, which includes investing more in people and technology than its rivals, developing new data services and improving its customer service offering.
“The acquisition is in line with our strategy to differentiate the AA through innovation and digital platforms. Putting service, innovation and data at the heart of everything we do is key to our strategy,” said Simon Breakwell, AA chief executive officer. “Prestige Fleet Servicing is a profitable and growing technology-led supplier of servicing, maintenance and repair and related added-value services, primarily to vehicle fleet and leasing companies and other large vehicle providers.”
He added: “This acquisition will allow us to take a strong operational model, supported by technology and utilise it across our own systems and the Prestige system to create a customer journey that is market leading.”