Verizon (VZ) Is Paying $2.4 Billion For This Company
Author By Sophia VidaPosted on The No. 1 U.S. wireless company had a big announcement on Monday. Verizon Communications Inc. will be purchasing GPS vehicle tracking firm Fleetmatics Group Plc for around $2.4 billion in an all cash deal. The purchase would bolster Verizon’s expansion into the connected vehicle and fleet management market.
Fleetmatics, headquartered in Waltham, Massachusetts, develops software that shows fleet operators vehicle location, fuel usage, speed, mileage and other information on their mobile workforce, including a driver’s behavioral data. The company has an international presence in regions such as Western Europe and Australia. In May, Fleetmatics posted revenue of $78.9 million for the first quarter, up 21 percent from a year earlier.
In the deal, Verizon will pay $60 per share for Fleetmatics, a premium of about 40 percent to the company’s closing price on Friday. The deal is expected to close in the fourth quarter of this year.
Fleetmatics shares exploded after the announcement and saw a 39% pop.
Disclaimer: We have no position in Verizon Communications Inc. (NYSE: VZ) nor FleetMatics Group PLC (NYSE: FLTX) and have not been compensated for this article.
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