Fleetmatics Groups is a Dublin based the cloud computing, fleet management firm is to be acquired by the leading cellular communication provider Verizon Communications. This deal will boost Verizon’s IoT portfolio such as connected car market and GPS vehicle tracking. The deal will be of $ 2.4 billion. Fleetmatics have around 737,000 subscribed vehicles and 37,000 customers worldwide.
Considering the fact that Verizon has revenue of $130 billion and Fleetmatics has revenue of $280 million this deal might provide a tiny bump for Verizon’s bottom line not for longer, though. The acquisition is the easier part integrating the business successfully is the harder part. Automotive being a big part of the emerging IoT. Though Verizon was an early trailblazer has lost a bit of ground over the time.
Orange Business Service announced the acquisition of Ocean, a fleet management vendor and fellow French company hence Verizon is not the first communication company to get into the fleet management business this year.
Verizon Telematics after this acquisition will become a leading provider of mobile workforce and fleet management with the offers from Fleetmatics such as GPS-based vehicle tracking, speed, and mileage tracking etc.
After the approval of Fleetmatics shareholders and Irish High Court, it is expected that the deal will be closed by the 4th quarter of this year.