Verizon Communications will acquire Hughes Telematics for $612 million.
The acquisition of Hughes Telematics enables Verizon to expand its capabilities in the automotive and fleet telematics marketplace.
Verizon will increase growth in key vertical segments, including emerging machine-to-machine (M2M) services applications driven by consumer trends and increasingly connected lifestyles.
Verizon will 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.
"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.
Leveraging Verizon's global IP network, cloud, mobility and security solutions, Hughes Telematics' flexible service-delivery platform has the potential to reach beyond the automotive and transportation realm to create new opportunities in mHealth, asset tracking and home automation.
Hughes Telematics will also play a key role in Verizon's strategy to offer platform-based solutions tailored to specific industries.
Recently, Verizon launched a new practice focused on developing telematics solutions that leverage the company's cloud and IT, security, global IP network and communications, and mobility and M2M technology platforms.
"This combination represents an exciting opportunity to accelerate our innovation of new services and global growth and to bring these services to more customers and industries worldwide," said Jeff Leddy, CEO of Hughes Telematics.
Verizon Enterprise Solutions creates global connections that generate growth and drive business innovation.
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