About Us
XATA Secures $6 Million Investment from Trident Capital
MINNEAPOLIS, June 20, 2007-XATA Corporation (NasdaqCM: XATA), an expert in optimizing fleet operations for the commercial trucking industry, announced today that it has received an additional $6.0 million investment by Trident Capital through a private placement of shares of its newly created convertible Series D Preferred Stock and Warrants to purchase XATA Common Stock. The shares of Preferred Stock are currently convertible into an aggregate of 1,566,580 shares of Common Stock. XATA also issued warrants that are currently exercisable for an aggregate of 469,974 shares of Common Stock at an exercise price of $3.83 per share. The warrants expire five years from the date of issuance. Trident Capital, a private equity and venture capital firm, is an existing investor in the Company with approximately 42% ownership. Managing over $1.6 billion in capital, Trident Capital focuses on information services and enterprise software businesses.
The funding will be used by XATA to extend its product portfolio for its current markets as well as market segments such as for-hire fleets, mid-size fleets and fleets with Class 3-5 vehicles. The Company will use the proceeds to launch its professional services offerings including fleet operations consultation, enterprise integration and project management. Further use of funds will help grow XATA's sales and distribution model by enhancing its direct sales and growing its distribution partnerships to increase market penetration.
Christopher Marshall, Managing Director of Trident stated, "Our investment will help XATA continue expansion of their on-demand cost and compliance solution, and position them for future growth into new markets. We are excited about our investment in XATA because of their experienced management team, deep customer relationships and innovative product leadership."
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements. However, as part of the transaction, the Company granted certain registration rights to the purchasers for purposes of registering the resale of the shares of Common Stock issuable upon conversion of the Preferred Stock and upon exercise of the Warrants issued in the private placement.
This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offering of the Company's securities under the resale registration statement will be made only by means of a prospectus.
About XATA
XATA, an expert in fleet management solutions, optimizes fleet operations by reducing costs and ensuring regulatory compliance for the trucking industry. Our on-demand software and professional services help companies manage fleet operations, enhance driver safety and deliver a higher level of customer satisfaction. Offered through a subscription service, XATA affordably oversees each and every truck in an organization's fleet, from small fleets to fleets with thousands of vehicles. XATA provides expert services to develop the business processes and training required to deliver the profitability, safety and service levels demanded by today's competitive transportation environments.
Based in Minneapolis, XATA revolutionized the trucking industry by being the first to introduce electronic driver logs and exception-based management reporting with automatic fleet information updates. By combining global positioning, wireless communication and on-board computers, XATA continues to leverage its software to help companies improve driver performance, mitigate risk and increase customer satisfaction. Today, XATA systems increase the productivity of more than 59,400 trucks at over 1,925 distribution centers across North America. For more information, visit www.xata.com or call 1-800-745-9282.
Except for historical information, matters discussed in this press release are forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Such statements are based on information available to management as of the time of such statements and include statements related to the securities purchase agreement and the intended use of proceeds. Factors that could cause actual results to differ include the factors discussed under the heading "Investment Considerations and Risk Factors" in Item I, Part 1 of our most recent Annual Report on Form 10-KSB, as well as the following factors: the public sale into the market of common stock issued pursuant to options granted under our employee benefit plans or common stock issuable upon conversion of preferred stock issued in our Series B and Series C equity financings or issuable upon exercise of warrants delivered in connection with such financings, and the common stock issuable upon conversion and exercise of the preferred stock and warrants issued in connection with the financing described in this press release; risks associated with estimates made by management based on our critical accounting policies; changes to financial accounting standards that may affect our results of operations; concentration of our common stock; volatility of the market price of our common stock; and war, acts of terrorism or the threat of either. The information included in this press release is operative as of this date only. The Company does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. In order to ensure that all investors continue to have equal access to the same information, the Company will refrain from updating forward-looking statements made in this press release unless it does so through means designed to provide broad distribution of the information to the public.
