Telecom Lead America: 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.
Hughes Telematics offers a portfolio of services through its
commercial fleet, aftermarket and original equipment manufacturer (OEM)
offerings as well products and services for mHealth providers and users.
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
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
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.