Verizon Communications Inc. has announced that it has signed an agreement to purchase California-based telematics company Telogis Inc.
“With a comprehensive enterprise product portfolio and partnerships with some of the world’s leading vehicle and equipment manufacturers, Telogis brings a world-class software platform and new distribution relationships to Verizon Telematics’ already expansive suite of connected vehicle solutions for consumers and enterprise customers,” said Andrés Irlando, chief executive officer of Verizon Telematics. “The combined strengths of our two companies’ unique assets better enable us to deliver best-in-class mobile enterprise management services to customers globally, while building scale and accelerating market share. I’m confident that the passion and talent of our collective employees will continue to drive revenue growth and product innovations to shape and lead the industry for years to come.”
“Verizon provides the brand equity, strength in the market, broad infrastructure and expansive global reach to take Telogis to the next level,” said David Cozzens, chief executive officer of Telogis. “This strategic acquisition positions our collective technologies and services uniquely in the market while also enabling Verizon Telematics’ industry-leading business to benefit from Telogis’ unmatched strength in the enterprise market, innovative Mobile Enterprise Management software platform and our strong OEM and ecosystem partnerships.”
This is not the only acquisition recently announced by Verizon Telematics—the company also announced its purchase of Fleetmatics Group PLC for approximately $2.4 billion.
“Fleetmatics is a market leader in North America—and increasingly internationally—and they’ve developed a wide-range of compelling SaaS [Software-as-a-Service]-based products and solutions for small- and medium-sized businesses,” said Andrés Irlando, chief executive officer 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.”
“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 chief executive officer 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.
Fleetmatics employs about 1,200 people, and 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, explained the company.
The acquisition is subject to customary regulatory approvals and closing conditions, including the approval of Fleetmatics’ shareholders and the sanction of the Irish scheme of arrangement by which Verizon will acquire Fleetmatics by the Irish High Court, and is expected to close in the fourth quarter of 2016.