Verizon to acquire Fleetmatics for $2.4bn
August 4, 2016
Verizon Communications is continuing its acquisition trail by announcing its plan to buy fleet and mobile workforce management company Fleetmatics for $2.4bn just a week after announcing its acquisition of Yahoo.
"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," said Andrés Irlando, CEO of Verizon Telematics.
In June, Verizon Telematics also announced the acquisition of Telogis, a cloud-based mobile enterprise management software company based in California. That transaction closed last month.
"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 globally," said Irlando.
With around 1200 employees, Fleetmatics is headquartered in Dublin, Ireland, with North American headquarters in Massachusetts. The company’s web-based products provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce, helping them reduce operating costs, as well as increase revenue.
“Verizon and Fleetmatics share a vision that the SaaS-based fleet management 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. “Fleetmatics brings over 37,000 customers, approximately 737,000 subscribers, a broad portfolio of industry leading products, and a team of 1200 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.”
Verizon Telematics, a subsidiary of Verizon Communications, operates in more than 40 markets worldwide and offers wireless, software and hardware to consumers, enterprises, car makers and dealers to power connected-vehicle products around the world.
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.
PJT Partners and Wells Fargo Securities are acting as financial advisors to Verizon. Cleary Gottlieb Steen & Hamilton, A&L Goodbody and Macfarlanes are acting as legal advisors to Verizon. Morgan Stanley is acting as financial advisor to Fleetmatics. Goodwin Procter and Maples & Calder are acting as legal advisors to Fleetmatics.
As a result of the announcement, Fleetmatics has cancelled its earnings call previously scheduled for next week and has withdrawn its most recent guidance with respect to 2016 as previously issued in May.