GI Partners has acquired a majority interest in Otodata Holdings, backing the Montreal-based Internet of Things company as it expands a remote monitoring platform already deployed across more than 3.5 million tanks worldwide. Existing investor Renovo Capital and Otodata’s management team will retain minority ownership positions in the company, allowing them to participate in its next phase of growth alongside GI Partners.
Founded in 2010, Otodata provides an integrated combination of remote monitoring hardware, software and applications for distributed tank assets.
Its technology allows customers to remotely monitor tank levels and receive real-time data that can improve delivery scheduling, asset utilization and workforce efficiency while helping prevent costly product runouts.
The company has installed its technology across North America, Europe, Latin America and the Middle East.
Otodata also owns Tag Tracking, a Canadian provider of vehicle tracking, theft prevention and stolen vehicle recovery services using its proprietary communications network.
The investment gives Otodata a new majority owner with experience across IoT, software and digital infrastructure.
GI Partners plans to support continued product development, expansion into additional verticals and broader adoption of Otodata’s existing solutions.
The opportunity is being reinforced by continued digitization of physical assets and increased use of automation and artificial intelligence to analyze data generated by connected devices.
For industries that manage large fleets of geographically distributed tanks and other physical assets, remote monitoring can reduce the need for manual inspections and provide operators with better information for inventory and delivery planning.
GI Partners believes those trends create additional growth opportunities for Otodata beyond its existing customer base and applications.
Renovo Capital first invested in Otodata in 2020.
During that partnership, the company expanded its manufacturing capabilities, geographic presence and product footprint while moving into additional vertical markets.
Renovo will remain invested rather than fully exit the business, reflecting continued conviction in Otodata’s growth prospects under GI Partners’ majority ownership.
GI Partners has raised more than $50 billion since its founding in 2001 and invests through private equity, real estate and data infrastructure strategies.
The firm’s private equity team focuses primarily on healthcare, services and software businesses, while its data infrastructure strategy targets physical assets supporting the digital economy.
Evercore served as financial advisor to Otodata, while DLA Piper acted as legal advisor.
Robert W. Baird served as financial advisor to GI Partners, and Ropes & Gray provided legal counsel.
KEY QUOTES:
“GI Partners’ deep experience investing in Internet of Things businesses, paired with its operational and digital infrastructure expertise, will help us strengthen our current offerings, better serve current and new customers, and accelerate our expansion into new verticals.”
Jeremy Eaton, CEO Of Otodata
“We see strong tailwinds in IoT from artificial intelligence, automation, and digitization, and Otodata is well positioned to capture them.”
Jerry Stapp, Managing Director At GI Partners
“From building out manufacturing capabilities to expanding both geographically and into other verticals, the team has executed flawlessly. We are excited to be part of the next chapter with GI Partners.”
Matt Farrell, Partner At Renovo Capital
