US mobile carrier Verizon today announced the acquisition of Hughes Telematics, a firm that specializes in bringing connected services to vehicles. The deal cost Verizon $12 per share in cash or a total of $612 million. The transaction will expand Verizon’s capabilities in the automotive and fleet telematics marketplace and accelerate growth in key vertical segments, including emerging machine-to-machine (M2M).
“We expect M2M and telematics to drive significant growth for Verizon and we’re taking an important step forward to accelerate solutions that will unlock more opportunities for existing and new HTI and Verizon customers,” John Stratton, president of Verizon Enterprise Solutions said.
From the announcement:
“The transaction will expand Verizon’s capabilities in the automotive and fleet telematics marketplace and accelerate growth in key vertical segments, including emerging machine-to-machine (M2M) services applications driven by consumer trends and increasingly connected lifestyles. HTI is a leader in implementing the next generation of connected services for vehicles, centered on a core platform of safety, security, convenience and infotainment offerings. HTI offers a portfolio of services through its commercial fleet, aftermarket and original equipment manufacturer (OEM) offerings as well products and services for mHealth providers and users.”
