Verizon To Acquire Fleet And Mobile Management Provider Fleetmatics For $2.4 Billion

Telecom giant Verizon Communications Monday unveiled plans to acquire fleet and mobile management company Fleetmatics Group for $2.4 billion, demonstrating that the carrier is serious about building out its Internet of Things strategy.

Basking Ridge, N.J.-based Verizon said it plans to buy Fleetmatics, headquartered in Dublin, Ireland, for $60 per share in a cash deal that is expected to close during Verizon's 2016 fourth quarter.

Fleetmatics, which has a North American presence in Waltham, Mass., is known for its GPS tracking products, services and software platforms for small- and midsize-business customers. The company will be absorbed into Verizon's Telematics division, the carrier's business unit that focuses on next-generation connected services for a variety of industries, including health care, automotive and insurance.

[Related: 5 Questions Answered About Verizon's Blockbuster Acquisition Of Yahoo]

According to the companies, Fleetmatics' Software-as-a-Service-based solutions offer visibility to fleet operators into vehicle location, fuel usage, speed and mileage, among other insight into a business' mobile workforce. This technology can help businesses reduce operating costs, according to 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," said Jim Travers, chairman and CEO of Fleetmatics, in a statement. "We are excited to partner with Verizon in fulfilling the mission of becoming the largest mobile workforce management company in the world."

AT&T, arguably Verizon's biggest competitor, also has a heavy focus on connected vehicles. The Dallas-based carrier has a robust connected car and telematics business unit, and currently works with 19 global vehicle manufacturers to provide diagnostics, safety and entertainment solutions.

Verizon Telematics has been on an acquisition roll. The carrier's business unit announced the acquisition of cloud-based mobile enterprise management software company Telogis in June. That transaction closed on July 29.

The acquisition is subject to customary regulatory approvals and closing conditions, which includes 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, the companies said.