Verizon said Monday it will pay $60 per share in cash for Dublin, Ireland-based Fleetmatics, a company in the truck and car tracking industry that also offers software-as-a-service (SAAS), business intelligence and historical data.
Its services include tracking location, fuel use, speed and mileage. The company has 37,000 customers and devices in about 737,000 vehicles in several countries including the U.S., Canada and the UK.
Verizon said the acquisition will allow it to expand its customer base in its mobile software segment. Last month, its Verizon Telematics subsidiary completed a deal to purchase Telogis, a company that provides dispatch, routing and monitoring software for vehicles.
Verizon is in the midst of a spending spree, also last week buying Yahoo’s operating business and acquiring AOL last year.
“The powerful combination of products and services, software platforms, robust customer bases, domain expertise and experience (from) 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,” said Andres Irlando, chief executive of Verizon Telematics.
The software-as-a-service segment in the fleet management industry is “extraordinarily large, lightly penetrated, global and fragmented,” Verizon said in a statement. The acquisition of Fleetmatics will help it penetrate and grow its market share in the space.
Software-as-a-service is a term used to describe software that can be downloaded over the internet or from the cloud without installing hardware. Companies that operate as SAAS providers include Google, Facebook and Twitter as consumers can access these services through the internet.
Verizon’s acquisition must be approved by Fleetmatics shareholders and the Irish High Court and is expected to close in the fourth quarter, Verizon said.