Verizon to clinch deal to acquire Fleetmatics for $2.4bn

1st Aug 2016 14:32

(ShareCast News) - US telecommunications giant Verizon is spreading its wings once again as it plans to acquire Dublin-based telematics company Fleetmatics in a deal believed to be valued at around $2.4bn.The agreement is expected to be finalised in the fourth quarter of this year, with Verizon paying $60 per share in cash, a 40% premium on Friday's closing price.Fleetmatics will become a part of Verizon Telematics, which is a subsidiary of the main Verizon brand. Shares in the company were up 39.20% in premarket trading on Monday, having closed 2.87% down on Friday at $42.96.Its recent acquisition of AOL, along with Yahoo, will allow Verizon to increase its media reach, and the latest purchase showcases its ambition to crack enterprise services.Verizon will take over Fleetmatics' web-based solution services, which allow fleet managers to locate vehicles and track their usage, speed and mileage easily.Chairman and CEO of Fleetmatics, Jim Travers, said in a statement, "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."Verizon Telematics CEO Andres Irlando said it was a great opportunity for both sides of the deal."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.