Fleetio, a software company specializing in managing corporate vehicle fleets, has secured $450 million in late-stage venture funding to support the acquisition of maintenance-authorization platform Auto Integrate.

The deal values the merged business at more than $1.5 billion, as per a statement examined by Bloomberg News. The funding round was jointly led by existing Fleetio investor Elephant VC and new supporter Goldman Sachs Alternatives.

The integrated company will cater to over 8 million vehicles and handle more than 13 million repair orders annually across a network of over 110,000 repair shops in the US, Canada, and Mexico.

Recognizing the challenges of fleet management, Fleetio CEO Jon Meachin emphasized the substantial expenses involved, aside from fuel costs, for many clients.

With the acquisition, fleet managers can forgo the need to coordinate with repair shops directly, streamlining the process significantly. The intention is to simplify the digital platform and enhance data integration and dashboard functionalities.

The plan includes the development of artificial intelligence and machine learning tools to automate manual tasks, identify repair irregularities, and prevent unnecessary expenditures.

Meachin will lead the combined entity, with Terry Bartlett, the CEO of Auto Integrate, slated to become part of the merged firm's executive team.

Assisted by Gillian Tan.