Verizon to acquire Hughes Telematics

Verizon Communications and Hughes Telematics have announced a definitive merger agreement under which Verizon will acquire Hughes Telematics for a total of US$612 million. Verizon says the transaction will expand its capabilities in the automotive and fleet telematics marketplace and accelerate growth in key vertical segments. Hughes offers a portfolio of services through its commercial fleet, aftermarket and original equipment manufacturer (OEM) offerings as well products and services for health providers
June 5, 2012 Read time: 2 mins

1984 Verizon Communications and 2149 Hughes Telematics have announced a definitive merger agreement under which Verizon will acquire Hughes Telematics for a total of US$612 million. Verizon says the transaction will expand its capabilities in the automotive and fleet telematics marketplace and accelerate growth in key vertical segments. Hughes offers a portfolio of services through its commercial fleet, aftermarket and original equipment manufacturer (OEM) offerings as well products and services for health providers and users.

The merger is expected to close in the third quarter of 2012, and Verizon plans to retain the existing management team and operate the new unit as a subsidiary within Verizon and operated as part of its Verizon Enterprise Solutions group. The business will continue to be headquartered in Atlanta.

"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 Hughes Telematics and Verizon customers," said John Stratton, president of Verizon Enterprise Solutions.

Related Content

  • The growth of ITS service solutions providers
    July 26, 2012
    Econolite's new subsidiary Aegis ITS has been set up to address the increasingly complex and exacting needs of agencies in the ITS sector. Chief Operating Officer Doug Terry talks about the evolution to service solution provider. A few very notable and honourable exceptions notwithstanding, it is these days becoming increasingly rare to find a public agency which develops its own traffic management systems. Indeed, most now rely on specialist manufacturers and suppliers to fulfil their needs. This has the h
    Read More
  • OBD aftermarket telematics subscribers market forecast
    March 28, 2014
    According to new research from ABI, the number of subscribers to OnBoard Diagnostics (OBD) aftermarket telematics solutions is expected to increase from 9.5 million in 2014 to 117.8 million in 2019. “OBD-dongle telematics devices are gaining momentum in North America and Europe in segments such as UBI, fleet management, and consumer telematics. Their plug-and-play characteristics, low cost and flexibility for a range of applications including diagnostics and maintenance, location tracking and trip loggin
    Read More
  • Lecip Holdings Corporation acquires Arcontia International
    August 23, 2013
    Arcontia International, Swedish producer of contactless smart card products and solutions for automatic fare collection (AFC) has been acquired by Lecip Holdings Corporation, a Japan-based manufacturer of products and solutions for the bus, train and automotive industry. The acquisition will enable Lecip to expand its range of public transport products and solutions and further strengthen its strategy to become a leading supplier in integrated AFC systems and Intelligent Transportation Systems (ITS).
    Read More
  • 5.7 million fleet management systems in Europe by 2016
    August 6, 2012
    According to a new research report from the analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in Europe was 2.5 million in Q4-2011. Growing at a compound annual growth rate (CAGR) of 17.9 per cent, this number is expected to reach 5.7 million by 2016.
    Read More

Highlighted Content