UK telematics firm Trak, which has operations in the UK, Europe, and North America has secured £40m through the sale of a minority stake to Three Hills Capital Partners.

The Crewe-based firm has developed a hardware and app-based telematics platform for the high-growth usage-based insurance and fleet management markets.

It said that the new funds will allow it to focus on rapid growth in the North American territory and consideration for further acquisition.

The combined group business has long-standing partnerships with global insurers, mobility operators and motor manufacturers, gathering and interpreting data from connected devices to help organizations manage driver and vehicle risk.

Its customers include RSA, Volkswagen Financial Services, Nationwide Insurance (USA), Allianz, Europcar and Zipcar.

The group also owns and operates multi award-winning telematics insurance broker Carrot Insurance and Trak Global Group (TGG), which employs over 250 people across four international offices.

The deal comes less than a year after Trak Global Group acquired IMS, one of North America’s three leading telematics solution providers.

TGG Group CEO Nick Corrie said the partnership will create a capital structure that will enable it to more rapidly execute its growth plans, both organic and by acquisition, with the goal of becoming a global leader in the insurance and shared mobility markets.

“We will also be continuing to invest in innovation, such as our pioneering work in Road Usage Charging in the US and developing IP around connected car services that our customers in UBI and mobility will jointly benefit from, particularly as we continue to see the convergence of these two markets,” he said.

“This is a real milestone for TGG, as we celebrate a decade in business. In THCP we’ve found an investment partner that believes in our vision, is very well-aligned culturally and possesses the expertise to help steer the business through what will be an exciting phase of growth.

“THCP’s solution was unique in the market and matches our ambitions for the future. Worldwide, TGG already connects half a million vehicles and we are aiming to increase this figure exponentially over the coming years.”

Joe Jefferies, UK coverage at THCP, who will join TGG’s Board, added: “Trak Global is our first investment in the IoT and telematics space, and during our detailed diligence into the sector it quickly became clear that TGG was the stand-out performer.”