Verizon Communications Inc. (NYSE: VZ) and Fleetmatics Group PLC recently announced that they have entered into a definitive deal, wherein the telecommunications company will purchase Fleetmatics for $60.00 per share or $2.4 billion in cash. Fleetmatic Group is a leading provider of software-as-a-service fleet management.
According to the Verizon Telematics CEO Andrés Irlando, “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.”
“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,” the Verizon Telematics CEO further added.
Meanwhile, the Fleetmatics CEO and Chairman Jim Travers said, “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.”
“Fleetmatics brings over 37,000 customers, approximately 737,000 subscribers, a broad portfolio of industry leading products, and a team of 1,200 professionals focused on solving the critical challenges of businesses that deploy mobile workforces. We are excited to partner with Verizon in fulfilling the mission of becoming the largest mobile workforce management company in the world,” the Fleetmatics CEO also said.
During the month of June. Verizon Telematics also revealed that it acquired Telogis Inc, which is a cloud-based mobile enterprise management software provider headquartered in Aliso Viejo, California. The mentioned transaction concluded on the 29th of July.
Fleetmatics is based in Dublin, Ireland and also has headquarters in Waltham, Massachusetts . The company has around 1,200 employees and its Web-based solutions offer visibility of the speed and mileage, fuel usage, vehicle location, and other factors. These solutions will aid fleet operators in minimizing operating costs and also boost revenues.
Verizon Communications subsidiary Verizon Telematics operates in over 40 markets all over the world and provides comprehensive hardware, software, and wireless solutions for power connected-vehicles.
The acquisition deal is still subject to regulatory approvals and closing conditions, such as the approval of the stockholders of Fleetmatics and the sanction of the Irish scheme of arrangement by which the telecommunications giant will purchase Fleetmatics by the Irish High Court. The deal is expected to be concluded during the fourth quarter of this year.
Wells Fargo Securities and PJT Partners serve as the financial advisors of Verizon, while A&L Goodbody, Cleary Gottlieb Steen & Hamilton LLP, and Macfarlanes LLP serve as its legal advisors.
On the other hand, Morgan Stanley serves as the financial advisor of Fleetmatics, while Maples and Calder and Goodwin Procter LLP serve as its legal advisors.