Verizon Communications Inc. (NYSE: VZ – $54.85) and Dublin, Ireland-based Fleetmatics Group announced they have entered into a definitive agreement under which Verizon will acquire Fleetmatics, a leading global provider of workforce management solutions, which helps connect mobile workers and their cars and equipment to the web, for approximately $2.4 billion. Fleetmatics, which will join Verizon’s Telematics division, provides a wide-range of products and solutions for small and medium-sized businesses, primarily in North America. Fleetmatics, which is also expanding internationally, brings over 37,000 customers, about 737,000 subscribers and a broad portfolio of fleet management products that deploy mobile workforces. In June, Verizon Telematics also announced the acquisition of Telogis, Inc., a global, cloud-based mobile enterprise management software company. The Fleetmatics acquisition is subject to customary regulatory approvals and closing conditions and is expected to close in the fourth quarter of 2016.
Verizon has been on a buying spree of late with last year’s purchase of AOL as well as recently acquired, Telogis, Yahoo!’s Internet operations and now Fleetmatics, as it strives to diversify from a provider of mobile phone and FIOS TV/Internet services. The shares remain a strong consideration for both income and conservative accounts.