GP Investments Ltd, a leading private equity firm in Latin America, announced it has invested an estimated R$168 million for a 56 per cent controlling stake in Sascar Tecnologia e Segurança Automotiva S.A. (Sascar).

Sascar is a major player in Brazil’s fast-growing mobile resource management (MRM) sector. The investment will be undertaken via GP Capital Partners V, L.P., a private equity fund managed by GP Investments V, Ltd., a wholly-owned subsidiary of GP Investments.

GP Investments’ Company CEO Antonio Bonchristiano said Sascar offers GP an opportunity to enter one of Brazil’s most attractive markets.  Bonchristiano said the investment offers immense growth prospects, adding that he was confident GI’s expertise in improving efficiency, managing growth and consolidation will help Sascar advance to new heights.

Sascar offers a wide range of real-time monitoring solutions with a strong focus on the location and recovery of stolen vehicles and the improvement of fleet management intelligence. The firm uses proprietary software and GSM/GPS technologies to track and monitor vehicles, providing information and value added services to help clients increase their security and productivity. Major client groups include insurance, risk management and transportation companies.

Sascar has grown at a double digit pace in recent years and currently monitors more than 180,000 vehicles, providing 24×7 customer assistance and relying on more than 500 points of installation and technical support throughout the country. Sascar is one of the leading players in the Brazilian MRM sector and is strategically positioned for further growth given its balanced customer base with key markets in insurance and logistics.

For GP Investments, this acquisition represents a unique opportunity to enter Brazil’s dynamic and promising MRM market. Monitored vehicles currently represent less than 5 per cent of the Brazilian fleet, indicating that there is room for growth. The overall fleet has also been growing fast, with new vehicle registrations setting annual records for four consecutive years, reaching 3.5 million in 2010.

GP Investments is a leading private equity firm in Latin America. Its mission is to generate higher than average long-term returns for its investors and shareholders. Since its inception in 1993, the firm has raised approximately US$5 billion from international investors and has acquired 49 companies in 15 different sectors. In May 2006 GP Investments concluded its initial public offering, thus becoming the first listed private equity company in Latin America.