Verizon to acquire fleet management company Fleetmatics
August 8, 2016
August 8, 2016
Verizon Communications Inc. and Fleetmatics Group PLC have entered into a definitive agreement under which Verizon will acquire Fleetmatics, a global provider of fleet and mobile workforce management solutions, for $60 per share in cash — representing a value of approximately $2.4 billion.
In June, Verizon Telematics announced the acquisition of Telogis Inc., a global, cloud-based mobile enterprise management software company based in Aliso Viejo, California. That transaction closed on July 29.
With approximately 1,200 employees, Fleetmatics is headquartered in Dublin, Ireland, with North American headquarters in Waltham, Mass. The company’s web-based solutions provide fleet operators with visibility into vehicle location, fuel usage, speed, mileage and other insights into their mobile workforce.
“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 medium-sized businesses,” says Andrés Irlando, CEO of Verizon Telematics.
Verizon Telematics, a subsidiary of Verizon Communications, operates in more than 40 markets worldwide and offers comprehensive wireless, software and hardware solutions to consumers, enterprises, automakers and dealers to power connected-vehicle products around the world.
“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,” says Jim Travers, chairman and CEO of Fleetmatics.
The acquisition is subject to customary regulatory approvals and closing conditions, including the approval of Fleetmatics’ shareholders and the sanction of the Irish scheme of arrangement by which Verizon will acquire Fleetmatics by the Irish High Court, and is expected to close in the fourth quarter of 2016, the companies say.
PJT Partners and Wells Fargo Securities, LLC are acting as financial advisors to Verizon. Cleary Gottlieb Steen & Hamilton LLP, A&L Goodbody and Macfarlanes LLP are acting as legal advisors to Verizon. Morgan Stanley is acting as financial advisor to Fleetmatics. Goodwin Procter LLP and Maples and Calder are acting as legal advisors to Fleetmatics.