Automakers and tech companies have been investing in the connected car technology domain for some time now. Betting on the same, Verizon Telematics
, a subsidiary of Verizon Communictaion
, which is a telecom network provider has acquired California-based, Telogis for an undisclosed amount. However, the terms of the deal are not disclosed by either of the companies and its closing is subjected to customary approvals.
Privately held, Telogis that develops fleet management software, leverages SaaS (software as a service) based connected intelligence platform. It provides work order management, commercial navigation and mobile integration services in the connected vehicle and mobile enterprise management sectors.
Its navigation software, says the company, is used by car companies like Ford, GM, Volvo and Toyota. Post-acquisition, its board will join the Verizon Telematics team which is expected to be in the second half of 2016.
David Cozzens, CEO, Telogis, said, “Verizon provides the brand equity, strength in the market, broad infrastructure and expansive global reach to take Telogis to the next level.”
“This strategic acquisition positions our collective technologies and services uniquely in the market while also enabling Verizon Telematics’ industry-leading business to benefit from Telogis’ unmatched strength in the enterprise market, innovative Mobile Enterprise Management software platform and our strong OEM and ecosystem partnerships.”
Verizon’s acquisition timeline has Telogis appearing third with earlier purchases like Complex which it acquired in April, 2016 for an undisclosed amount. And Aol. Which it acquired in May, 2015 for $4.4 billion.
Verizon, which is based out of New York was aided by financial and legal advisories like PJT Partners
and Wells Fargo Securities
, and Debevoise & Plimpton
respectively. Meanwhile, Barclays
and JP Morgan
acted as financial advisors and Paul Hastings LLP
acted as legal advisor to Telogis throughout the transaction.
Andrés Irlando, CEO of Verizon Telematics, said, “With a comprehensive enterprise product portfolio and partnerships with some of the world’s leading vehicle and equipment manufacturers, Telogis brings a world-class software platform and new distribution relationships to Verizon Telematics’ already expansive suite of connected vehicle solutions for consumers and enterprise customers.”
“The combined strengths of our two companies’ unique assets better enable us to deliver best-in-class mobile enterprise management services to customers globally, while building scale and accelerating market share. I’m confident that the passion and talent of our collective employees will continue to drive revenue growth and product innovations to shape and lead the industry for years to come,” Irlando added.
Verizon Telematics claims that it offers services and solutions to companies in over 40 markets of consumers, enterprises, automakers, and dealers.