National Express pulls up in Silicon Valley
Transport company National Express has picked up a 60% stake in Silicon Valley bus shuttle firm WeDriveU for 84.3 million US dollars (£64.5 million).
WeDriveU transports almost seven million passengers a year and provides employee shuttle services to many of the largest Fortune 500 companies based in Silicon Valley and San Francisco.
Last year it generated annual revenues of 139.9 million US dollars (£107 million), earnings of 21.1 million US dollars (£16.1 million) and operating profit of 15.4 million US dollars (£11.8 million).
National Express has the option to acquire remaining shares in tranches over the next three years.
Dean Finch, chief executive at National Express, said: “As the premier operator in Silicon Valley and the wider San Francisco Bay Area, WeDriveU provides the opportunity for expansion into a fast-growing market.
“WeDriveU also has a presence in other fast-growing cities in the US, which present other platforms for growth in this very attractive market.”
In addition to Silicon Valley, WeDriveU operates in Los Angeles, Seattle, Boston, Portland, Denver and Austin.
WeDriveU’s chairman and chief executive Dennis Carlson said: “We have grown our business significantly in recent years and plan to continue expanding into new markets, drawing on National Express’s reputation for excellence and its extensive nationwide presence.”