Just a few days after buying search engine giant Yahoo for $4.8 billion, Verizon has made another mega deal for GPS vehicle tracking vendor FleetMatics.
With its wireless business on the decline, Verizon is looking at new areas for growth and believes telematics, video streaming and the Internet of Things can be the answer. With telematics, Verizon can match its wireless coverage with commercial-fleet monitoring for such services as route and fuel optimization. The wireless company has made similar GPS tracking acquisitions this year to enable this service, including Telogis Inc., which it acquired in June.
The deal for Dublin, Ireland-based FleetMatics is valued at about $2.4 billion and will bring Verizon web-based solutions for fleet operators, such as vehicle location, fuel usage, speed and mileage, and other insights into its mobile workforce to help with reducing operating costs and boosting revenue.
“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,” says Andrés Irlando, CEO of Verizon Telematics.
The acquisition will include all 1,200 FleetMatics employees and has more than 37,000 customers worldwide.
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