6 February 2019
The AA has successfully completed the acquisition of Prestige Fleet Servicing (Prestige), a profitable and growing technology-led supplier of Service, Maintenance and Repair (SMR) services to fleet and leasing companies. The total consideration for the acquisition is expected to be c£11m.
The SMR market plays a key role in addressing a driver’s planned and unplanned needs and represents a significant opportunity for the AA to grow new revenue streams without incurring significant capital expenditure.
- Opportunity to expand Prestige’s current core customer base to include AA Fleet customers (we currently have more than 60% of the Fleet market in the UK)
- Strong and profitable platform to further strengthen our presence in Service, Maintenance and Repair (SMR)
- New revenue opportunity without significant capital expenditure
- Acquisition in line with our strategy to differentiate the AA through innovation and digital platforms
- Builds on positive momentum in B2B business
The AA’s B2B strategy is focused on putting service, innovation and data at the heart of what we do:
- Creating industry-leading, cutting-edge B2B partnerships
- Delivering world class customer service
- Investing more than any other provider in technology and people
- Developing connected and integrated Roadside propositions and new data services
- Enhancing our leading position as the B2B partner of choice
The Prestige acquisition will give the AA a strong and profitable platform from which to further strengthen our presence in SMR, working with fleet and leasing companies and supporting our OEM partners. The acquisition will also deliver synergies.
Simon Breakwell, AA Chief Executive Officer, said: “We are delighted that the AA has acquired Prestige Fleet Servicing.
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
“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.”
Services are delivered via a network of c. 400 garages with agreed labour rates. The process is automated through Prestige’s proprietary software platform, UNITY.
Prestige’s customers are comprised primarily of major fleet operators.
The AA already works with more than 60% of the fleet market and many AA customers utilise the Prestige network already.