Hot off the heels of its acquisition of Yahoo last week for $4.8 billion, today Verizon announced another huge purchase: it’s buying Fleetmatics, a telematics company based out of Dublin, Ireland, for $2.4 billion in cash to build out the products that it offers to mobile workforces.
The deal comes about six weeks after Verizon announced that it would acquire another company, Telogis, to add to its telematics business. That deal’s financial terms were not disclosed.
Fleetmatics has been publicly traded since 2012 and the deal is equivalent to $60 per share in cash. When it was private, Fleetmatics had raised over $93 million from investors like IVP.
Verizon Telematics CEO Andres Irlando says the deal was done to build up its telematics services for small and medium businesses.
“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,” he said in a statement. We will be talking with him later and will update after that.
Fleetmatics is an SaaS-based provider of GPS and other services to fleets and companies with mobile workforces. It has 37,000 customers, 737,000 subscribers and 1,200 employees.
“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,” said Jim Travers, Chairman and CEO of Fleetmatics, in a statement.
Verizon Telematics is a subsidiary of the company that also owns AOL (which owns TechCrunch). It is active in more than 40 markets globally with a mix of software and hardware solutions.
The deal is expected to close in the Q4 2016.