The $2.4 billion move is designed to boost Verizon’s visibility in the fleet and mobile workforce management space.
Andrés Irlando, CEO of Verizon Telematics, commented that “Fleetmatics is a market leader in North America — and increasingly internationally — and they’ve developed a wide-range of compelling SaaS-based products and solutions for small- and medium-sized businesses.”
The $60 per-share acquisition price represents nearly a 40% premium over FLTX’s Friday closing price of $42.96. Fleetmatics shares haven’t performed well at all this year, falling more than 15% since the start of 2016. The stock’s all-time high of $62.86 was reached in December of last year.
Verizon clearly isn’t worried about the stock’s underperformance, however. The telecom giant simply wants to grow its presence in the SaaS space, and acquiring Fleetmatics provides one-click access to the company’s 37,000 customers and approximately 737,000 subscribers.
Shares of Verizon Communications Inc. (NYSE:VZ) were unchanged in premarket trading at $55.41. VZ has gained 19.88% year-to-date, outpacing the S&P 500 by more than three-to-one.