Tuesday , 25 October 2016
Breaking News

Verizon Boosts Telematics Unit with $2.4 Billion Fleetmatics Buy

Only days after announcing its plans to acquire Yahoo?EU?s operating business, wireless and broadband communications provider Verizon said today that it will also be acquiring Fleetmatics Group for approximately $2.4 billion in cash. Fleetmatics is a global provider of mobile GPS tracking technology for fleet operators.

Although the company is based in Dublin, Ireland, Verizon said the impetus for the acquisition was Fleetmatics?EU? presence in North American and international markets. “Fleetmatics is a market leader in North America — and increasingly internationally — and they’ve developed a wide-range of compelling SaaS-based products and solutions for small- and medium-sized businesses,” said Andres Irlando, CEO of Verizon Telematics, in a statement.

Acquisition Spree

Verizon has been on something of an acquisition tear lately. Last week?EU?s acquisition of Yahoo was valued at around $4.83 billion. While the Yahoo deal was seen as an attempt to gain access to the company?EU?s audience of more than 1 billion users, it also fit in nicely with Verizon?EU?s plans to grow its mobile business. Around 60 percent of Yahoo?EU?s active monthly users are mobile users.

But the Fleetmatics deal seems more closely tied to Verizon?EU?s June acquisition of Telogis, a cloud-based mobile enterprise management software company. Telogis was folded into Verizon?EU?s telematics division, which offers wireless, software and hardware solutions to consumers, enterprises, automakers, and dealers to power connected-vehicle products around the world. Verizon said Fleetmatics will likewise be absorbed into its telematics business.

“The powerful combination of products and services, software platforms, robust customer bases, domain expertise and experience, and talented and passionate teams among Fleetmatics, the recently-acquired Telogis, and Verizon Telematics will position the combined companies to become a leading provider of fleet and mobile workforce management solutions globally,” Irlando said.

Expanding into Enterprise IT Services

The acquisition will bring Verizon approximately 1,200 new employees, 37,000 clients, and 737,000…