Verizon Communications announced August 1 that it will be purchasing vehicle tracking firm Fleetmatics Group Plc for $2.4 billion in cash. The move is meant to bolster Verizon's expansion into the connected vehicle and fleet management markets. This acquisition comes about a month after Verizon announced it would purchase location-based software producer Telogis for $400 million, a deal which officially closed at the end of July.
Fleetmatics is a software developer, which creates programs that can allow fleet managers to track a vehicle's location, fuel usage, speed, mileage, and other critical information. It can even keep track of a driver's behavior behind the wheel. They are headquartered in Dublin, Ireland, with their North American headquarters based in Waltham, Massachusetts.
As the telecommunications market becomes more and more saturated, Verizon's actions in trying to expand it's software subsidiary, Verizon Telematics, isn't surprising. The subsidiary currently operates in more than 40 markets around the world, offering software and hardware solutions for consumers, enterprises, automakers, and dealers to help them power connected-vehicle products.
The acquisition of Fleetmatics helps the company capture market share in the fleet and mobile workforce management business, Andrés Irlando, Chief Executive Officer of Verizon Telematics, said in an interview.
In addition to owning Fleetmatics and Telogis, Verizon Telematics also offers it's own fleet management service, Networkfleet.
The Fleetmatics deal is expected to close in the fourth quarter of this year, pending customary regulatory approvals and closing conditions.
NAFA Fleet Management Association
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