Advertisement

Verizon CEO Lowell McAdam wasn’t kidding when he said Verizon isn’t done with acquisitions yet.

The carrier on Monday announced plans to acquire software-as-a-service fleet management company Fleetmatics in another move meant to boost its connected car portfolio. Fleetmatics, which is headquartered in Dublin, Ireland and Waltham, Mass., provides web-based solutions that allow fleet operators to track vehicle location, fuel usage, speed, mileage and other metrics to reduce operating costs.

The $2.4 billion deal will net Verizon more than 37,000 customers, 737,000 subscribers, Fleetmatic’s product portfolio and 1,200 employees focused on developing mobile fleet and workforce solutions, the company said. The deal is expected to close in the fourth quarter 2016.

Verizon Telematics CEO Andres Irlando said the purchase will “position the combined companies to become a leading provider of fleet and mobile workforce management solutions globally.”

“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,” Fleetmatics CEO Jim Travers said in a statement.

The move comes little more than a month after Verizon announced an agreement to acquire fellow telematics company Telogis for an undisclosed sum. The deal also comes less than a week after the announcement of Verizon’s big deal to acquire Yahoo for $4.83 billion.

The Telogis and Fleetmatics telematics buys come as Verizon looks to bolster its position in the connected car and Internet of Things (IoT) space.

Verizon’s current IoT portfolio, which includes solutions like its plug-in hum vehicle diagnostic and tracking tool, grew 25 percent year over year in the second quarter to pull in $205 million in revenue.

Verizon CFO Fran Shammo said the carrier is expecting those revenues to continue to ramp up going into 2017.

Though McAdam said during the carrier’s second quarter earnings call Verizon has seen “strong demand” for its telematics products and sees “many opportunities to expand in the market,” the company is up against some stiff competition from wireless rival AT&T.

At the end of the second quarter 2016, AT&T had more than 28 million connected devices – including over 9 million connected cars – on its network.

Advertisement
Advertisement