After buying Yahoo
for $4.8 billion earlier, Verizon
has signed an agreement and has announced the acquisition of Ireland-based Fleetmatics, a Software-as-a-Service (SaaS
) firm that develops, builds and provides GPS fleet tracking system for service-based businesses.
The $60 per share, $2.4 billion (approximately) all cash deal is claimed to aid Verizon Telematics
, a subsidiary of Verizon Communications. The acquisition will potentially help Verizon to expand into the connected vehicle, Internet of Things (IoT), mobile workforce management and fleet management market.
The buyout however is subjected to customary regulatory approvals and closing conditions, including the approval of Fleetmatics’ shareholders and the sanction of the Irish scheme of arrangement. And is expected to close in the fourth quarter of 2016.
Fleetmatics that specializes in software offering GPS solution allows fleet operators to monitor vehicle location, fuel usage, speed and mileage. It boasts to provide services to around 37,000 fleet management customers including Time Warner Cable
. It also claims to count approximately 737,000 subscribed vehicles with over 101 billion collected data points and Fleetmatics customers can use this data both to reduce operating expenses and find ways to generate more revenue, says the company.
Jim Travers, Chairman and CEO, Fleetmatics, said:
Verizon and Fleetmatics share a vision that the SaaS-based fleet management solution market is extraordinarily large, lightly penetrated, global and fragmented which can best be attacked together with a world class product offering and the largest distribution channel in the industry.
“Fleetmatics a broad portfolio of industry leading products, and a team of 1,200 professionals focused on solving the critical challenges of businesses that deploy mobile workforces. We are excited to partner with Verizon in fulfilling the mission of becoming the largest mobile workforce management company in the world,” Travers added.
Although this isn’t Verizon’s first buy in logistics, earlier in June, it bought telematics company
for an undisclosed sum to move beyond its core offerings of phone services and bolster its portfolio in the connected car space. The telecommunications firm was founded in the year 1983 and since has been competing the likes of Sprint
Verizon Telematics that reportedly operates in over 40 markets, offers comprehensive wireless, software and hardware solutions to consumers, enterprises, automakers and dealers to power connected-vehicle products. Andres Irlando, CEO, Verizon Telematics believes that “Fleetmatics is a market leader in North America and increasingly internationally and have developed a wide-range of compelling SaaS-based products and solutions for small- and medium-sized businesses.”
“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 continued.
According to the company, the merger between both telematics solution providers saw PJT Partners, Wells Fargo Securities, Cleary Gottlieb Steen and Hamilton, A&L Goodbody and Macfarlanes act as financial and legal advisors to Verizon. While, Morgan Stanley, Goodwin Procter and Maples and Calde assisted Fleetmatics in financial and legal aspects.