THOR Industries announced that it has entered into a letter of intent to sell a majority interest in its digital application business, TH2Connect – better known as its product name, Roadpass Digital.
The TH2Connect digital platform collectively operates as Roadpass Digital, and consists of Roadtrippers, Campendium, RVillage, Togo RV, Roadpass and Overnight RV Parking. Graham Allen Partners, an Indiana-based private equity firm, will purchase a controlling interest in the business for $81 million in a transaction that is scheduled to be closed on or before April 30.
“When we first created Roadpass Digital several years ago with our initial investment in TH2Connect, we had the foresight to see the fragmentation in the digital experience of RVers,” said Bob Martin, president and CEO of THOR. “Through Roadpass Digital, we helped fill that void and, in doing so, we opened the RV lifestyle to users who expect a great digital experience. As we’ve watched our user base grow into millions of users, we can see that our timing was right and our execution in the key components of Roadpass Digital has been successful. Still, we recognize that, at our core, we are an RV company and not a software company.
“The sale of a majority position of Roadpass Digital comes at a time when it’s clear that Roadpass is positioned for great opportunities ahead, but it will require sustained amounts of focus and technology expertise to help it get to the next level. This transaction will enable us to maintain the focus of our capital and strategic initiatives on our core business, while allowing a knowledgeable and experienced partner to help Roadpass Digital continue to grow.”
“The sale price for a controlling interest in the business reveals the incredible value we have created in Roadpass Digital in what is a relatively short time in the life of a digital platform,” added Todd Woelfer, chief operating officer at THOR. “We believe Graham Allen Partners is the right firm to help Roadpass Digital reach new levels of success and further scale the digital experience with RVers everywhere. We’ve accumulated invaluable learnings from operating a digital platform of this magnitude, positioning us to better understand the needs of customers in the digital age in a way that differentiates us from our competitors. And as we move forward, THOR will be a customer of Roadpass to gain consumer insights and help serve the needs of THOR customers in improving their RV experiences.”
“THOR has been an incredible lead investor for Roadpass Digital,” explained Danny Hest, CEO of Roadpass Digital. “Under THOR’s ownership, we’ve found our product-market fit, and developed the platform to include virtually anything an RVer could need to better his or her experience, including education, service, campground reviews, an online community, RV GPS navigation, and the world’s leading trip planning application, Roadtrippers. As we look ahead, the opportunity to grow with a majority investor with digital experience is exciting for Roadpass. We expect this arrangement will allow our team to continue to innovate and deliver great experiences for RVers, campers and road trippers.”