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Monday, Aug 15, 2022

GM Venture Arm Takes Telogis Stake in Latest Infusion

Aliso Viejo-based Telogis Inc. has received an equity investment from GM Ventures, the venture capital arm of General Motors Inc. The value of the minority stake was not disclosed.

The transaction strengthens the relationship between the companies that was first forged in March when Telogis announced a deal to equip General Motors’ commercial vehicles with software that links operation centers with far-flung fleets.

Telogis will integrate its telematics software into GM’s OnStar connectivity system, which has more than 6.5 million subscribers in China, the U.S., Canada and Mexico.

The offering, rolling out in various GM models, can provide commercial fleet operators with information on a vehicle’s location, odometer reading, fuel consumption and other data.

Telogis uses GPS technology and proprietary software to help commercial fleets create better routes, track shipments and deliveries, manage mobile workforces, and smooth work flows.

The latest development follows a couple of recent deals for the company.

Exclusive Agreement

Telogis signed an exclusive agreement last month with Isuzu Commercial Truck of America Inc. to supply the Anaheim-based company with new telematics systems in an effort to improve the fleet’s connectivity services.

The Isuzu commercial truck division, part of Isuzu Motors Ltd. in Tokyo, has been among the largest sellers of low-cab forward trucks in the U.S. since the mid 1980s, according to the company.

Telogis in June signed its first software contract with the U.S. unit of Hino Motors Ltd., the third largest truck maker in the world. It also secured a small strategic investment from Detroit-based private equity firm Fontinalis Partners LLC, which was cofounded by William Clay Ford Jr., the executive chairman of Ford Motor Co. and son of the owner of the Detroit Lions.

Telogis raised $93 million last year in a Series A funding round led by Menlo Park-based investment firm Kleiner Perkins Caufield & Byers. The investment was believed to be the largest any OC company received in a funding round last year.

Telogis’ first significant deal came in 2011 when it embedded its telematic software in Ford’s commercial trucks and vans, allowing Ford’s fleet customers to manage vehicles remotely through a website.

The flurry of venture capital investment and partnerships with major car and truck manufacturers has fueled growth at Telogis, one of the fastest-growing companies in Orange County in the past few years. Executives told the Business Journal that they expected sales to hit $100 million last year.


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