Verizon to acquire Hughes Telematics
2012-06-05Verizon Communications Inc. and Hughes Telematics, Inc. have entered into a definitive merger agreement under which Verizon will acquire Hughes Telematics, Inc. (HTI) for $12.00 per share in cash, or a total of $612 million. The transaction will expand Verizon's capabilities in the automotive and fleet telematics marketplace and accelerate growth in key vertical segments including emerging machine-to-machine (M2M) services applications driven by consumer trends and increasingly connected lifestyles.
John Stratton, President, Verizon Enterprise Solutions said, "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. Joining Hughes Telematics' robust service-delivery platform and suite of applications with our existing assets will create a premier set of capabilities. In powerful combination with 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."
Jeff Leddy, CEO, HTI, said, "This transaction provides Hughes Telematics' stockholders with a substantial premium over today’s market price of our common stock. We are proud to join a world-class organization like Verizon which will help us continue to build and expand on our industry-leading services. 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."
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