Trimble : to Divest Telematics Businesses to Platform Science

Published: 2024-09-15 08:13:03 ET TRMB

Trimble Inc.

Trimble to Divest its Global Transportation Telematics Business Units to Platform Science

September 2024

© 2024 Trimble, Inc - All Rights Reserved - Confidential and Proprietary Information

Key Deal Terms

Key Deal Terms

Structure

Sale of 100% of the interest in the transferred businesses to Platform Science

Transferred Businesses

Includes North America, Europe, and Brazil mobility businesses

Retained by Trimble

Trimble will retain Transporeon, Enterprise, and Maps businesses; Trimble is not

contributing any cash to the pro forma company

Consideration

Trimble to receive 32.5% ownership interest in Platform Science (Pro Forma)

Trimble's Ownership Interest

Preferred stock (28.5%) + common stock warrants (4%)

Board Representation

Right to appoint 1 director and 1 observer to the Platform Science Board

Accounting treatment, post-close

Trimble's ownership in Platform Science is expected to be reflected under the cost

method of accounting

Timing

Expected to close 1H'25, subject to customary closing conditions and regulatory

approvals, and any delayed closings that may be required in certain foreign jurisdictions

3

The transaction with Platform Science further simplifies and focuses Trimble

Enhances Connect & Scale

Strengthens Financial Profile

Reduces Execution Risk While

Strategy

and Flexibility

Retaining Upside

4

Pro Forma Trimble has higher organic revenue growth, higher organic ARR growth and higher margins

FY 2024

Organic Growth Y/Y %

Organic ARR Growth %

Non-GAAP Operating Margin %

Adjusted EBITDA Margin %

Trimble

Transportation & Logistics

Status Quo (1)

Pro Forma (2)

Status Quo (1)

Pro Forma (2)

≈+6%

≈+7.5%

Flat/+LSD%

+HSD%

≈+12%

≈+14%

+MSD%

+HSD%

≈25.2%

≈26.2%

≈18%

Low 20%s

≈27%

≈28%

NA

NA

Note: For the trailing twelve months ended Q2'24, the mobility businesses generated approximately $300 million of revenue and approximately $30 million of operating profit. Annualized recurring revenue for the businesses was approximately $200 million in the second quarter of 2024.

LSD refers to low single digit. MSD refers to mid single digit. HSD refers to high single digit.

Disclaimer

Trimble Inc. published this content on 15 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 15, 2024 at 12:12:03 UTC.