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U.S. telco buys another fleet management firm just days after completing Telogis acquisition.
Verizon on Monday bought another fleet management firm, Fleetmatics, for US$2.4 billion (€2.15 billion).
Headquartered in Dublin, Fleetmatics provides GPS-based fleet management systems to SMEs. At the end of the first quarter, the company served 37,000 customers and had 737,000 vehicles connected via its products.
"Fleetmatics is a market leader in North America – and increasingly internationally – and they’ve developed a wide range of compelling SaaS (software-as-a-service)-based products and solutions for small and mid-sized businesses," said Andrés Irlando, CEO of Verizon Telematics.
"Verizon and Fleetmatics share a vision that the SaaS-based fleet management solution market is extraordinarily large, lightly penetrated, global and fragmented which can best be attacked together with a world class product offering and the largest distribution channel in the industry," added Fleetmatics CEO Jim Travers.
The deal is subject to customary closing conditions, including regulatory approval, and is expected to close in the fourth quarter of 2016.
Fleetmatics will be integrated into Verizon Telematics, which offers a range of connected vehicle products, from diagnostics and roadside assistance to in-vehicle entertainment, in addition to fleet management systems. It sells to enterprises, car makers, and to consumers, under the Hum brand.
Monday’s announcement comes a little over a month after Verizon agreed to buy fleet management software provider Telogis for an undisclosed sum. The transaction closed on Friday.
"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," Irlando said.
