21 Partners has signed an agreement for the acquisition of Coyote System, the French leader in automotive telematics data and services with a unique community-based business model. The transaction, to be finalized in the next few weeks, is the first investment of 21 Centrale Partners IV, launched in July 2009.Coyote, with its community of 200’000 subscribed members and additional 500’000 users of iPhone Coyote applications, sells devices equipped with a GSM/GPRS chip allowing real-time communication of traffic information and road monitoring conditions between users. The business model is based on monthly service subscriptions implying a recurring revenue structure.Coyote boasts exponential growth of revenues as well as significant increases in margins due to an enhanced contribution of subscription fees. Initially commercialized as an interactive warning device for speed cameras, Coyote has undeniably become an established agent of traffic information communication and road safety.21 Partners’ international dimension and platform of senior advisors will provide Coyote with resources, know-how and strategic expertise to successfully drive expansion in Europe, particularly Italy, Spain, Portugal, Poland and the Netherlands with the objective of building a European leader.
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