Verizon Communications has announced an agreement to acquire Fleetmatics, a global provider of fleet telematics and mobile workforce management solutions, for around $2.4 billion. The move comes just a week after Verizon confirmed its acquisition of Yahoo for $4.8 billion.
The takeover is subject to customary regulatory approvals and closing conditions, including the approval of Fleetmatics’ shareholders and the sanction of the Irish scheme of arrangement (Verizon will acquire Fleetmatics through the Irish High Court). The deal is expected to close in the fourth quarter of this year.
Fleetmatics has more than 37,000 customers, 737,000 subscribers, a broad portfolio of products and around 1,200 employees. It is headquartered in Dublin, with a US headquarters in Waltham, Massachusetts.
Fleetmatics’ product provides fleet operators with visibility over vehicle location, fuel usage, speed and mileage, and offers other insights into the activities and performance of mobile workforces, helping firms to reduce operating costs and increase revenue.
Andres Irlando, CEO of Verizon Telematics, said: “Fleetmatics is a market leader in North America – and increasingly internationally – and they’ve developed a wide range of compelling SaaS (software as a service)-based products and solutions for small- and medium-sized businesses.”
Verizon Telematics – a subsidiary of Verizon Communications that focuses on fleet management, mobile workforce solutions and the Internet of Things – is active in more than 40 markets worldwide. It offers wireless, software and hardware solutions to consumers, enterprises, OEMs and dealers to power connected-vehicle products.
In June, Verizon Telematics announced that it was to acquire Telogis, a global, cloud-based mobile enterprise management software company. That deal was completed on July 29th.
Before the two acquisitions, Verizon Telematics had only tempted a handful of OEMs to its product offering, but it seems the company is now actively seeking to increase its presence in the connected car space.
Many believe onboard telematics technology could eventually take over from barcodes and RFID tags in automotive supply chains. The barcode is already more than 40 years old, so it may well be time for the new tech in town to take the crown.