Trax Technologies, Inc., the provider of a leading global logistics SaaS platform, has announced that Strattam Capital, LLC, a private equity firm focused on core enterprise information technology and services, will take a majority stake in the company. Strattam is investing in partnership with Trax’s current management team, led by Founder and CEO J. Scott Nelson.
Strattam purchased a majority of Trax’s shares for an undisclosed price and provided an additional $10 million of growth capital to fund Trax’s strategic initiatives, including expansion of the company’s products and services. Nelson and the rest of Trax’s leadership team will remain in their current positions.
“Capital Southwest and River Cities Capital Fund have been outstanding and supportive partners of Trax during the formative years of our business. Their early recognition of the potential and inherent value of the Trax offering has contributed to our strong growth, stability and customer success in the marketplace and set the stage for the next stage in the business evolution of Trax Technologies,” said Brian McCarthy, Executive Chairman of Trax. “Strattam adds critical skills and capabilities to our team as we continue to build this extraordinary business.”
Trax estimates that inaccurate or incomplete logistics data costs buyers and sellers in the $4.2 trillion global transportation industry hundreds of billions of dollars a year. The Trax platform automatically identifies and fixes inaccuracies in logistics data by applying big data, continuous assurance and other analytical tools. Trax provides its solution to a blue-chip, global customer base that includes some of the largest and most complex organizations in the world. Trax’s customers enjoy a significantly deeper and more accurate level of visibility to their logistics activities, which reduces cost and increases confidence in strategic decision making.
“The Trax platform is a data refinery, harmonizing information across the incredibly complex global supply chain. Trax turns data into information, information into knowledge, and knowledge into prescriptive action,” said Nelson. “Strattam’s focus on enterprise technology and their understanding of big data brings to Trax exactly the type of partnership we need to continue to mature our business globally. The entire Trax team is excited about the level of alignment with the Strattam team and vision.”
The logistics industry is large, complex and constantly changing. Its complexity increases daily as global distribution networks adapt to multiplying numbers of parties in the supply chain, lower inventory levels, shorter product life cycles and more direct shipments. Ensuring the flow of accurate information within this dynamic environment is becoming increasingly difficult and costly to manage. The cost of bad data increases every year, causing inaccuracies in the settlement process, inaccuracies in financial reporting, poor decisions, untrusted reporting and faulty analysis. In the settlement process alone, 30% of logistics invoices are deficient. The direct costs are enormous, and the indirect legal, financial, operating expense and compliance risk comprise are even larger.
“Over its 22-year history, Trax has developed a unique solution that allows it to serve as a strategic partner for its world-class customer base,” said Bob Morse, Co-Founder and CEO of Strattam Capital. “We are thrilled to partner with Scott and his team to further develop Trax’s product offering and execute on the next phase of growth.”