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Verizon To Buy Fleetmatics For $60 A Share In Cash

Verizon Communications Inc. (NYSE: VZ) and Fleetmatics Group PLC (NYSE: FLTX) reached an agreement by which the telecom service provider would buy the latter for $60.00 per share in cash. This translated into approximately $2.4 billion. The firm believes the transaction would speed up its position as a leading provider of fleet and mobile workforce management solution.

The telecom service provider expects the transaction to close in the fourth quarter of the current year, which is subject to customary regulatory approvals and closing conditions. That included Fleetmatics' shareholders approval and the Irish High Court permission.

The acquisition comes on the heels of Verizon Telematics, a subsidiary of Verizon, completion the previously announced acquisition of Telogis, Inc., a global, cloud-based mobile enterprise management software.

Verizon Telematics CEO, Andres Irlando, commented, "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."

Similarly, Fleetmatics Chairman and CEO, Jim Travers, said, "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."

The Irish company brings in more than 737,000 subscribers, 37,000 customers, a wide range of portfolio, and 1,200 professionals team focused on solving the critical challenges of deploying mobile workforces.

Fleetmatics stock surged $16.89 or 39.32 percent to $59.85 at time of writing.

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.