Verizon Buys Big Into IoT With $2.4B Fleetmatics Deal

Verizon is bolstering its profile in the fleet tracking business, buying Fleetmatics Group plc for $2.4 billion in an all-cash deal.

The deal -- at $60 per share -- is a nearly 40% premium over Fleetmatics' closing share price of $42.96 Friday. Dublin, Ireland-based Fleetmatics was founded in 2004 and has 1,200 employees, over 37,000 customers and approximately 737,000 subscribers. The company develops GPS location-based employee status, fuel and billing desktop and mobile software.

"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," said Andrés Irlando, CEO of Verizon Telematics, of the deal.

Want to know more about IoT? Visit the Light Reading IoT section.

Although the connected car has caught the hype wave, Verizon has long been in the fleet management game. Verizon formed the Telematics unit in 2006 and grew it through the acquisition of Hughes Telematics in 2012. (See US Giants Carve Out Role in the Industrial IoT .)

Verizon says that it has also closed its acquisition of Telogis, which should further bolster its connected car business.

The Fleetmatics acquisition is expected to close in the fourth quarter of 2016.

— Dan Jones, Mobile Editor, Light Reading

COMMENTS Add Comment
bosco_pcs 8/2/2016 | 6:04:19 PM
Re: Mobility Definitely not your parents' baby bell 😀! $VZ has been on a buying spree so what is a couple billions between friends. But then, it has also unloaded a lot of landlines to CTL (or FTR?) and Fairpoint before that. So maybe it considers property swappings 
cnwedit 8/2/2016 | 5:33:16 PM
Re: Mobility The deal makes sense, I can't comment on the price, that's a pretty hefty premium. 
bosco_pcs 8/1/2016 | 2:37:58 PM
Mobility For a moment, it was a head scratcher when the news came out. No it makes sense. So $VZ is going after mobility like everyone else
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