AA acquires Prestige Fleet Servicing
The AA has acquired Prestige Fleet Servicing as it looks to strengthen its presence in the fleet Service, Maintenance and Repair (SMR) sector.
Founded in 2007, Prestige Fleet Servicing offers SMR services via a network of around 400 garages with agreed labour rates, backed up by its Unity web-based SMR management tool.
The acquisition, expected to bring a total consideration of around £11m, “represents a significant opportunity for the AA to grow new revenue streams without incurring significant capital expenditure”, working with fleet and leasing companies and supporting its OEM partners, according to the organisation.
It would also provide an opportunity to expand Prestige’s current core customer base to include AA Fleet customers – the AA says it currently have more than 60% of the fleet market in the UK – and would deliver synergies.
The announcement comes two years after Prestige Fleet Servicing partnered with the AA to further strengthen its inspection and selection process of service centres and run vehicle spot checks across the UK.
Commenting on the new deal, Simon Breakwell, AA chief executive officer, said: “The acquisition is in line with our strategy to differentiate the AA through innovation and digital platforms. Putting service, innovation and data at the heart of everything we do is key to our strategy.
“Prestige Fleet Servicing is a profitable and growing technology-led supplier of servicing, maintenance and repair (SMR) and related added-value services, primarily to vehicle fleet and leasing companies and other large vehicle providers.
“This acquisition will allow us to take a strong operational model, supported by technology and utilise it across our own systems and the Prestige system to create a customer journey that is market leading.”