Verizon plans to acquire Fleetmatics in $2.4 billion deal
Verizon Communications will acquire leading telematics provider Fleetmatics Group for $2.4 billion in a cash deal that will create a powerhouse telematics provider, the telecommunications giant has announced.
Earlier Monday, Verizon announced it would buy Fleetmatics for $2.4 billion.
Verizon will pay $60 per Fleetmatics share, a premium of about 40 per cent to Friday’s close.
Shares in Fleetmatics soared 39 percent to $59.60 while Verizon dipped 0.7 percent to $55.01.
Fleetmatics offers a software platform providing Global Positioning System vehicle management and other services to companies with mobile workforces.
The acquisition of Fleetmatics comes just a week after it emerged Verizon was acquiring original internet portal Yahoo for $4bn.
Though McAdam said during the carrier’s second quarter earnings call Verizon has seen “strong demand” for its telematics products and sees “many opportunities to expand in the market”, the company is up against some stiff competition from wireless rival AT&T.
Fleetmatics offers a range of SaaS products aimed at SMEs in North America and has been expanding its presence internationally.
Fleetmatics, which has its North American headquarters in Waltham, Massachusetts, develops software that shows fleet operators vehicle location, fuel usage, speed and mileage, and other data on their mobile workforce, Verizon said.
Fleetmatics has 1,200 staff serving more than 37,000 customers and about 737,000 subscribers.
In addition, Verizon Telematics last week closed the acquisition of Telogis, a cloud-based mobile enterprise management software company based in Aliso Viejo, Calif. Verizon did not disclose the investment details for buying Telogis.
Verizon Telematics will use the acquisition to become “a leading provider of fleet and mobile workforce management” products, Andrés Irlando, CEO of Verizon Telematics, said in a press release.