US telco Verizon Communications has agreed to acquire Hughes Telematics (HTI) for US$12 per share in cash, or US$612m in total.
Verizon said the deal will allow it to expand in the automotive and fleet telematics markets. Hughes Telematics provides…
US telco Verizon Communications has agreed to acquire Hughes Telematics (HTI) for US$12 per share in cash, or US$612m in total.
Verizon said the deal will allow it to expand in the automotive and fleet telematics markets. Hughes Telematics provides connected services for vehicles.
John Stratton, president of Verizon Enterprise Solutions, said: “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.”
The deal, which is expected to close in the third quarter of 2012, has been approved by the boards of both companies and HTI’s majority shareholders, but still requires regulatory approval.
Verizon said it plans to retain the existing management team of HTI and operate the new unit as a subsidiary of the Verizon Enterprise Solutions Group.
Verizon was advised by UBS and Debevoise & Plimpton, while HTI hired Barclays and Skadden, Arps, Slate, Meagher & Flom. The special committee of the board of directors of HIT was represented by Moelis & Co and Nelson Mullins Riley & Scarborough.