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August 1, 2016 3:30 PM, EDT
Verizon to Pay $2.4 Billion for Fleetmatics Group
Scott Eells/Bloomberg News

Verizon Communications Inc. has entered into a definitive agreement to acquire Dublin-based Fleetmatics Group for about $2.4 billion, or $60 per share in cash, as it expands its telematics business.

“Verizon and Fleetmatics [a provider of fleet and mobile workforce management solutions] 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, said in an Aug. 1 statement.

The agreement was announced after Verizon’s July 29 statement that it closed its previously announced acquisition of Telogis Inc. for an undisclosed amount. That transaction was announced in June. Telogis, founded in 2001, makes logistics software, most of which is sold to fleet operators.

"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 Inc., and Verizon Telematics will position the combined companies to become a leading provider of fleet and mobile workforce management solutions globally,” Andrés Irlando, CEO of Verizon Telematics, said in a statement.

New York-based Verizon said Fleetmatics has 37,000 customers, about 737,000 subscribers, a broad product portfolio and a team of 1,200 employees.

“We are excited to partner with Verizon in fulfilling the mission of becoming the largest mobile workforce management company in the world,” Travers added.

Verizon said its telematics unit operates in 40 markets worldwide.