Verizon Expands Into Automotive Tech With $2.4 Billion Fleetmatics Acquisition
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Verizon Communications agreed to buy GPS vehicle-tracking company Fleetmatics Group in an all-cash deal valued at $2.4 billion, vaulting the telephone giant deeper into the automotive-technology market.
Verizon will pay $60 a share, a 40% premium to Fleetmatics’ closing price last week, according to a statement Monday. The company, based in Dublin, develops software that tracks commercial drivers’ vehicle location, fuel usage, speed and mileage for better fleet management. The deal is expected to close in the fourth quarter.
With its wireless business slowing, Verizon has been pursuing new sources of growth like mobile advertising, streaming video and the so-called Internet of Things. The deal is the latest in an acquisitive streak for Verizon, following its $4.83 billion purchase of Yahoo! Inc.’s web assets last week.
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