CIP Capital

eDriving, U.S. Driving Safety Leader, Makes Multiple Global Acquisitions

eDriving

eDriving, U.S. Driving Safety Leader, Makes Multiple Global Acquisitions
Consumer and Fleet Driving Poised for Fundamental Change Fueled by Telematics

OAKLAND, California - March 22, 2016 – eDriving, the leading provider of online driver education in the U.S. with more than 10 million customers to date, has acquired Interactive Driving Systems, a renowned global provider of fleet driver safety management solutions through its Virtual Risk Manager® (VRM) platform.  Concurrently, eDriving acquired Mentor eData, a consumer-focused telematics app and analytics provider.  The combined companies form the leading driver training and risk reduction business with a mission of training consumer and professional drivers to be the best and safest they can be and evolving crash-free operating cultures for corporations worldwide. 

The impacted and addressable market is vast, given the critical nature and costs associated with driving for individuals, families, small businesses and major corporations.  The ability to draw on fast-emerging telematics, big data and the Internet of Things (IoT) in constructing solutions creates an unparalleled and immediate opportunity for eDriving.  In the U.S. alone, there are nearly 30,000 fatal motor vehicle crashes annually and motor vehicle collisions are the leading cause of teen deaths.[1]  The global value of the auto insurance market is expected to reach $821 billion by 2018.[2]  As technology quickly evolves and consumers and companies adjust to next-generation options, the global telematics market is expected to reach $45 billion by 2019.[3]

"These acquisitions fast-track our vision of offering a full suite of solutions that maximize road safety and constructively empower personal and professional drivers to better control what is happening when they are behind the wheel.  If you want safer family cars and lower fleet operating costs with more predictable insurance rates, you need sharper focus on the driver," said Celia Stokes, CEO of eDriving, who joined the company in early 2015 and paved the way for a significant expansion of the organization's focus and impact.

Mission — Size & Scope

The new eDriving enterprise, with over 430 employees worldwide, will immediately begin sharing assets and resources, including patents, data analytics, telematics data, technology development, websites, apps, subject matter experts, interactive content and video libraries.  Financial terms of the acquisitions were not disclosed, but the combined company now has:

  • More U.S. state approvals than any other company to provide online driver training and certification
  • 1 million novice and driver improvement customers annually (consumer market)
  • More than 700,000 fleet drivers in 97 countries, using courses in 45 languages
  • Over 10 million unique visitors to websites
  • A powerful telematics and analytics engine capable of operating as a turnkey offering as well as connecting to other telematics providers
  • 200 driving instructors in a fleet of BMW Mini Coopers in key markets
  • A blue-chip customer base including global Fortune 500 companies.

"It's an honor to be combining forces with a best-in-class provider in driver risk reduction strategies that has created meaningful, crash-free cultures for such an impressive set of worldwide corporate customers.  I have spoken with many of these customers and the value they place on ensuring their employee drivers return home safely to their loved ones every day is palpable and foundational — as is their reliance on and trust in Interactive Driving Systems," added Stokes.  "And Mentor eData's rigorous approach to using data to model driving behaviors enables us to fuel a different level of driver insight, training and effect.  Our three organizations share a thorough and engaging approach to driver improvement and risk reduction while our market reach and areas of core competency are entirely complementary.  This combination is game changing for the industry."

"We already have a pipeline of customers who see the combination of entities as greater than the sum of the parts and are ready to engage more deeply," commented Ed Dubens, the founder and CEO of Interactive Driving Systems who becomes Executive Vice President (EVP) of newly formed eDriving FLEET, LLC and will continue to drive all operations and strategy for the fleet business line.  "Driver safety is, indeed, poised for fundamental change."

Multiple Brands, New Telematics Team & Flagship Clients

eDriving will operate and integrate brands including DriversEd.com, I Drive Safely, Virtual Risk Manager®, eDriving FLEET, OneMoreSecond®, DriveInsight™, and DrivingBuddy™ and expects to launch multiple products in coming months. These products include a closed-loop, mobile-based virtual coaching product that is modeled after Interactive Driving System's popular, award-winning, flagship offering, Virtual Risk Manager (VRM).

Flagship Interactive Driving Systems' clients include Nestle, Johnson & Johnson, Pfizer, GSK, Cummins, Merck & Co., Zurich, BT, Royal Mail, Liberty Mutual and Roche. Many have won prestigious awards for improving safety outcomes while substantially reducing costs.

Steve Lakowske, founder and CEO of Mentor eData, will join as a senior executive in eDriving's telematics team and brings established customer relationships from the insurance and international mapping services markets.

Range of Offerings & Audiences

With these transactions, eDriving emerges as the only company providing a full suite of driver training solutions, including a closed-loop solution combining telematics, other driver inputs, interactive online content, and virtual coaching services with licensed instructors to improve driving behavior and lower risk.  For the first time, on a global scale, the following offerings will be available providing compelling choices for teenagers and their parents, adult drivers, contract drivers, corporations, regulatory agencies, insurance companies, telematics service providers and a myriad of other potential partners interested in the fast-changing driving ecosystem:

  • Online, state-approved novice driver certification programs
  • State-approved online traffic school
  • Behind-the-wheel state-mandated driver training delivered by 200 experienced instructors in several states
  • A full driver risk management program and platform for corporate customers
  • A closed-loop, mobile, telematics-enabled virtual coaching offering for consumers, corporations and insurance partners
  • Over 1,000 hours of online content and interactive coaching modules also available to partners on a standalone basis
  • eDriving Certified™: Driver safety certification programs for corporations and businesses seeking 3rd party certification and endorsement of their employee or freelance drivers.

 

About eDriving

eDriving is the largest provider of online driver education in the regulated consumer driver training business with more than 1 million annual customers and 430 global employees. In addition to state-regulated online novice driver training and state-mandated driver improvement (a.k.a. traffic school), our focus is on helping drivers become smarter and safer behind the wheel in partnership with corporate (fleet) and insurance partners.  We are uniquely positioned at the convergence of effective e-learning content creation, telematics-based mobile apps, and solutions that help remediate personal driving behavior to improve safety and reduce insurance costs. Our mission is to offer a full suite of solutions that maximize road safety by putting both new and experienced drivers in better control of the right driving behaviors. 

About Interactive Driving Systems

Interactive Driving Systems is a global provider of Driver Safety Management Solutions. We work with our clients on shaping and influencing their drivers' attitudes and behavior toward safer travel. This is achieved through Virtual Risk Manager's (VRM) award-winning solution – Crash Free Culture®. VRM helps bring organizational policy to life, ensuring expectations are reinforced and understood across the entire organization.  Our primary goal is to help clients reduce driver incidents, collisions, license penalties/endorsements and injuries year over year.

About Mentor eData

Mentor eData develops application software that dramatically improves driving behavior for B2C and B2B customers. Our mobile app platform, DrivingBuddy, and analytics engine, DriveInsight, facilitate drivers' awareness of the implications of their driving behaviors relative to safety and risk. Our unique application architecture facilitates integration with other apps to tap into large existing app user bases and rapidly generate massive amounts of driving and other demographic data. We continuously refine and develop innovative analytics for DoD driver training, corporate fleets, insurance companies, driving schools, and consumer apps that reward good drivers and increase the competency and awareness of drivers of all ages.

 

[1] http://www.iihs.org/iihs/topics/t/general-statistics/fatalityfacts/state-by-state-overview and http://www.cdc.gov/motorvehiclesafety/teen_drivers/teendrivers_factsheet.html

[2] http://www.finaccord.com/press-release_2015-global-motor-insurance-size-segmentation-forecast-for-the-worldwide-market.htm

[3] http://www.marketsandmarkets.com/PressReleases/automotive-telematics.asp

CIP Capital Completes Investment in Community Investors

Community Investors

CIP Capital Completes Investment in Community Investors
Growth-oriented, sector-focused private equity firm to invest in leading provider of SaaS-based solutions to the property management and homeowner association markets

September 16, 2015 – CIP Capital Fund, L.P. (“CIP Capital”) has completed a platform investment in Community Investors, Inc. (“CII” or the “Company”).  Community Investors is a leading provider of SaaS solutions to the property management and residential homeowner association (“HOA”) markets. CII’s software solutions enable its customers to streamline operations, communicate with homeowners and manage their security needs through an integrated, cloud-based web portal. In addition to HOAs, the Company provides software solutions to homebuilders and real estate agents.

“Today’s announcement represents a significant step in CII’s path towards creating an enterprise class platform that is unparalleled in the homeowner association market. Through our partnership with CIP Capital, CII will continue to expand its presence in our core verticals while heavily investing in technology in order to expand our product offerings,” said Tim Vollman, Chief Executive Officer of Community Investors.  The existing management team of CII will continue to lead the Company going forward.  The Company will be investing in next generation technology solutions and product development across each of its end markets while adding new service lines organically and through strategic acquisitions.   

Justin Lipton, Managing Partner of CIP Capital, commented: “We are excited about partnering with the management team to accelerate growth with the leading property management and security software solution in the homeowner association market.  We believe there is a unique opportunity to scale the business in the core community operations segment, while strategically evaluating adjacent markets through investments in the Company’s technology platform.”  Scott Marden, Managing Partner of CIP Capital, added: “CIP is committed to investing in targeted businesses which provide best in class, integrated solutions for its customers.  The CII investment fits squarely within CIP Capital’s Technology-Enabled Services sector focus and is a platform with a significant consolidation opportunity in a highly fragmented space.” Community Investors is the fifth platform investment for CIP Capital.

About Community Investors, Inc.:

Community Investors is a leading national provider of SaaS solutions to the property management and HOA markets. The Company’s products are sold across the lifecycle of an HOA community, beginning with the residential construction phase, during the sales process, and ultimately on a go forward basis through property management and community interaction solutions. CII provides a true end to end SaaS solution to property managers and HOAs, enabling its clients to run more profitable and competitive businesses.  The Company is headquartered in Denver, CO with offices in Irvine, CA.  For more information please visit: http://www.communityinvestorsinc.com/.

Scott Marden Joins Judges Panel at the fourth AARP Health Innovation@50+ LivePitch in Miami, FL

aarp 

April 16, 2015

The fourth AARP Health Innovation@50+ LivePitch will take place Thursday, May 14, 2015 at the Miami Beach Convention Center. LivePitch is the premier showcase featuring the most exciting start-up companies in the “50 and over” health technology and innovation sector. The event offers the venture capital and angel investor community as well as the media, and consumers, the opportunity to connect with outstanding start-ups.

“This year 228 outstanding companies from around the world applied to present on stage at AARP Health Innovation@50+, making our job of selecting the finalists extremely difficult,” said Jody Holtzman, AARP’s senior vice president of Thought Leadership. CIP Capital's Managing Partner Scott Marden will be one of this year's expert judges

Scott Marden Joins Panel at Chicago Booth's 14th Annual Private Equity Conference

 

 

 

February 20, 2015

The Private Equity Group and the Polsky Center for Entrepreneurship and Innovation at Chicago Booth host their 14th Annual Private Equity Conference.

CIP Capital's Managing Partner Scott Marden is a featured speaker on the panel "Realizing Returns through Operational and Strategic Enhancements" at this year's 14th Annual Beecken Petty O'Keefe & Company Private Equity Conference. The Private Equity Conference brings together financiers, students, and entrepreneurs to network and share insights into the dynamics of investing in a constantly changing economy.

I Drive Safely and DriversEd.com Merge to Form eDriving, Creating the Leading Provider of Online Driver Training in the United States

eDriving

I Drive Safely and DriversEd.com Merge to Form eDriving, Creating the Leading Provider of Online Driver Training in the United States
Company Also Announces Key Additions to the Senior Management Team

January 20, 2015 – Oakland, CA – CIP Capital, a middle-market private equity fund, announced the formation of eDriving LLC (the “Company”), the leading provider of online driver’s education, defensive driving education, behind-the-wheel training and fleet driving safety. eDriving was created by the strategic combination of I Drive Safely, a CIP Capital portfolio company, and DriversEd.com, the leading provider of online and behind-the-wheel driver education solutions to teenagers, in the second half of 2014. The Company will be located in Oakland, CA and Carlsbad, CA with local offices throughout the United States.

With more than 10 million customers to date and 400 employees worldwide, eDriving is the largest provider of online driver education and training solutions to consumers and corporations through its I Drive Safely and DriversEd.com brands, providing online driver training solutions in all 50 states and Canada. The Company is uniquely positioned at the convergence of several key trends: the growth of online education, the exploding marketplace connecting drivers to new business models, the growth of apps and wearable devices to capture and control personal data and behavior, and the growing public focus on mitigating distracted and unsafe driving. In addition to online course delivery, the Company also has more than 110 DriversEd.com branded cars providing behind-the-wheel instruction—the only national provider offering first-time drivers a bundled solution consisting of online driver education and behind-the-wheel driver training. The Company also has a growing presence in the corporate fleet training market, with an initial focus on small to medium sized fleets. The combination will accelerate eDriving’s launch of next-generation content, telematics and technology solutions to students and their parents, adult drivers, contract drivers, corporations and insurance companies. It will also enable the Company to better serve students and corporate and academic partners immediately with an expanded portfolio of courses, broader reach, and combined domain expertise. 

The Company also announced a series of management additions in conjunction with the creation of eDriving. Celia Stokes joined the Company in January 2015 as Chief Executive Officer. Ms. Stokes most recently served as the interim President of Envision Experience. She spent the previous eight years as EVP and Chief Marketing Officer at K12 Inc. (NYSE: LRN), a leading provider of online education curriculum and technology solutions to students and state and local governments. Ms. Stokes brings more than 25 years of executive leadership and strategic marketing experience with a primary focus on the education, online marketing, travel and e-commerce industries.  “I am excited to lead eDriving and accelerate growth through the combination of the two leading brands in a very dynamic market,” Ms. Stokes said. “We are extremely well positioned against the fascinating 'drivatization' trend happening not just in the US but around the world that is delivering driving-centered business models at a pace and scale unimaginable a few years ago. Our mission is to offer a full suite of solutions that maximize road safety and enhance personal control of driver behavior and data. We will be the compelling choice for teenagers, adult drivers, contract drivers, corporations, regulatory agencies, insurance companies and the myriad other potential partners interested in this rapidly evolving ecosystem of drivers, cars and business models dependent on road safety.”  

In addition, the Company announced that Lowell Orelup has joined as Chief Marketing Officer. Mr. Orelup brings over 20 years of leadership experience within technology driven sales and marketing companies, most recently serving as VP of Marketing for Lending Tree (NASDAQ: TREE), a leading online lender exchange.

George Montgomery, the previous CEO of I Drive Safely, has been named as Chairman of the Board of eDriving and will partner with Ms. Stokes and the Board to execute the Company’s long-term strategy. Mr. Montgomery stated: “I look forward to working with Celia and the rest of the management team as they build out the team and lead the Company into its next phase of growth.”