(Image credit: Adobe Stock.)
Verizon Communications Inc. (New York) has entered into a definitive to acquire Fleetmatics (Dublin), a global provider of fleet and mobile workforce management solutions, for $60.00 per share in cash – representing a value of approximately $2.4 billion.
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.
“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,” comments Andrés Irlando, CEO of Verizon Telematics.
“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,” Irlando adds.
Largest Distribution Channel in the Industry
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, asserts 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,” Travers comments. “We are excited to partner with Verizon in fulfilling the mission of becoming the largest mobile workforce management company in the world.”
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.
“Fleetmatics and other fleet management telematics firms are actively working with commercial insurers to leverage telematics within their customers’ commercial fleets to better manage risk through driver scoring, asset recovery and fleet maintenance and to offer variations of Usage Based Insurance programs to the commercial auto policyholder base,” comments Stephen Applebaum, Managing Partner of Chicago based advisory firm Insurance Solutions Group.
Verizon’s acquisition reflects the company’s interest in protecting and boosting its core network business, but also its diversification strategy to establish itself in Telematics—as with the acquisition of Telogis—not only for commercial fleet management but also as a gateway to the much larger opportunities in usage Based Insurance programs in both personal and commercial Lines globally, Applebaum adds. “More significantly, it shows that Verizon is preparing to take advantage of the even larger and broader wireless connectivity revenue opportunities that accompany the exploding Internet of Things,” he says. “Insurers will be among the largest users and beneficiaries of these torrents of data and having pre-existing value-added relationships with them through telematics and Usage Based Insurance will be advantageous to Verizon.”
Editor’s Note: Stephen Applebaum’s quotes were added after the initial publication of the story.