Verizon buys Fleetmatics
Wireless company Verizon plans to boost its impact on the connected vehicle market by acquiring Fleetmatics Group for $2.4 billion cash.
The GPS vehicle tracking business has enjoyed a 39 percent surge in shares to $59.60. Verizon will pay $60 per share. Fleetmatics software shows fleet operators vehicles' locations, speed, fuel usage, and other important information which allows a company to keep a close eye on its drivers.
Verizon hopes that adding more connections to its network will ensure it maintains an edge over its smartphone competitors.
The company closed another deal last week, buying up Telogis, which also builds commercial vehicle-tracking software.
Verizon Telematics offers its own fleet management service - Networkfleet - but considers these recent acquisitions an added bonus in this industry.
Both Verizon and Fleetmatics have reported impressive increases in revenue, with the former enjoying a 25 percent rise in the second quarter of this year, and the latter achieving 21 percent up in the first quarter. The revenues were $205 million and $78.9 million respectively.
This news comes hot on the heels of Verizon's $4.8 billion Yahoo acquisition, which will aid with its digital media arm.
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