Melton Mowbray-based Prestige Fleet Servicing has been snapped up by The AA for a total consideration expected to be about £11m.
The AA has said the deal will give it a "strong and profitable platform" from which to strengthen its service, maintenance and repair offering in the region.
Prestige Fleet Servicing will continue to be run by its current management team.
Chief executive Simon Breakwell 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.
"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."