IoT Business Makes Verizon Acquire Fleetmatics For $2.4 Bn

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Its certain that internet of things was at the back of the mind when Verizon decided to acquire Ireland based Fleetmatics for $2.4 billion a day back. Fleetmatics is a leading fleet and mobile workforce management company that works on a SaaS model. It offers enterprises solutions on how to track vehicles, their drivers in a cost effective way while monitoring them on real time.

This acquisition along with the Telogis acquisition in June would help Verizon position itself in the connected vehicles segment opening up another revenue stream.

“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,” said Andres 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.

The Fleetmatics acquisition is expected to close in the last quarter of 2016, Verizon said in a statement.

“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,” 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 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,” Travers added.

In June, Verizon Telematics also announced the acquisition of Telogis, Inc., a global, cloud-based mobile enterprise management software company based in Aliso Viejo, Calif. 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 and mileage, and other insights into their mobile workforce, helping them to reduce operating costs, as well as increase revenue.

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