Verizon Communications said it will acquire Hughes Telematics in a move designed to boost the US based wireless communications company’s capabilities in the automotive and fleet telematics marketplace.
Verizon will pay 612 million dlrs for the telematics company.
The acquisition will accelerate Verizon’s growth in business areas such as machine-to-machine services applications and other telematics-based services.
Hughes Telematics provides connectivity with a platform of safety, security, convenience and infotainment offerings. That platform will be combined with Verizon’s global IP network, cloud, mobility and security solutions.
“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,” said John Stratton, president of Verizon Enterprise Solutions.
The transaction is expected to close in the third quarter of 2012. Verizon said it plans to retain Hughes Telematics’ management team and run the company as a subsidiary of the Verizon Enterprise Solutions group.
Verizon Enterprise Solutions creates global connections and provides a range of global wholesale offerings offered over the company’s secure mobility, cloud, strategic networking and advanced communications platforms.