The stock of Xata Corp. rose nearly 12 percent Friday, to $2.80 per share, on news that it has secured $30 million in new equity capital, is planning a $20 million acquisition and has achieved improved performance in fiscal 2009.
In an interview, Xata CEO Jay Coughlan said Technology Crossover Ventures and Trident Capital, an existing investor, have invested $30 million to acquire more than a third of the company in a private deal at $3 per share.
The investment will fuel Xata's $20 million cash-and-stock acquisition of Canada-based Turnpike Global Technologies, a fleet-management system that Coughlan said will allow Xata to work with fleets of 100 or fewer trucks.
Xata's subscription-based software system helps 1,400 North American transport operators manage fleet operations, regulatory compliance and safety.
Technology Crossover -- which now owns 33 percent of the stock -- and Trident Capital -- which increased its ownership slightly to 25 percent -- are California-based investors in growing technology companies. Palo Alto-based Technology Crossover's portfolio includes Netflix, RealNetworks and Redback Networks.
The acquisition will also expand Xata's product offerings and management systems through hand-held computers offered by Sprint and AT&T.
Xata posted earnings before interest, taxes and depreciation of $4.1 million in fiscal 2009 compared with $1.7 million in 2008, cut its per-share loss dramatically and posted a year-over-year revenue increase of 22 percent, to $65.3 million.
"All the charts are going in the right direction," Coughlan said.
