Verizon grows mobility business with $2.4B acquisition

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The Verizon headquarters building is seen on July 25, 2016 in New York City.

Verizon Telematics Inc. is expanding its mobility and vehicle logistics services with a planned acquisition of a company that could help it become a player in an area that’s crucial in the development of self-driving cars.

The New York-based wireless communications giant on Monday announced it has entered into a definitive agreement to acquire FleetMatics Group PLC for about $2.4 billion, or $60 a share.

Ireland-based FleetMatics provides operators of truck and delivery fleets with information on vehicle location, fuel usage, speed, mileage and other areas. That information will be necessary for connected vehicles that can drive themselves. FleetMatics serves more than 37,000 customers and has about 737,000 subscribers.

The acquisition announcement comes after the Verizon Telematics subsidiary closed an agreement July 29 to purchase Telogis Inc. for an undisclosed amount. The Aliso Viejo, Calif.-based company is a global, cloud-based software firm specializing in connected vehicles and advanced management of people, processes and technology focused on managing mobile devices, wireless networks and other mobile computing services.

“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,” said Verizon Telematics CEO Andres Irlando in a statement on Monday.

Verizon Telematics, a subsidiary of Verizon Communications, operates in more than 40 markets worldwide and offers comprehensive wireless, software and hardware solutions to consumers, enterprises, automakers and dealers to power connected-vehicle products around the world.

The FleetMatics acquisition is expected to close in the fourth quarter. It is subject to customary regulatory approvals and closing conditions.

FleetMatics shares closed up 38.7 percent to $59.50 per share Monday. Verizon was down 1.6 percent to about $54.50 per share.

mwayland@detroitnews.com

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