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With Telogis, Verizon Telematics is expanding its fleet management offering (Photo: Telogis)

Verizon has signed an agreement to buy Telogis, a location-based transportation software maker. The US telecommunications group said Telogis will enhance its telematics-based services offering for connected vehicles and other business areas.

"Telogis brings a world-class software platform and new distribution relationships to Verizon Telematics’ already expansive suite of connected vehicle solutions for consumers and enterprise customers,” Verizon Telematics CEO Andres Irlando said in a statement.

Privately owned Telogis was founded in 2001. The California-based company has developed telematics-based fleet-management software for companies that include Ford Motor, Volvo and General Motors. Its location-based mobile intelligence is of particular interest to trucking fleet operators.

In 2014, the company received an undisclosed amount in equity investment from General Motors Co.'s (GM) venture capital arm, General Motors Ventures LLC. The year before, venture capital firm Kleiner Perkins Caufield & Byers injected 94 million dlrs.

Until the news of the Verizon acquisition, Telogis, which has estimated annual revenue of between 120 million and 140 million dlrs, was rumored to be heading for an IPO.

Verizon Telematics powers the Mercedes mbrace connectivity suite as well as Volkswagen's car-net. It also offers a range of other connected-vehicle products.

Terms of the acquisition weren't disclosed. Regulatory approvals are expected in the second half of 2016.