Verizon plans to acquire Fleetmatics in $2.4 billion deal
Verizon Communications Inc. on Monday said it's entered an agreement to acquire Fleetmatics Group PLC in a deal valued at $2.4 billion. Fleetmatics is a mobile workforce solutions company offering businesses the software and means to track and analyze data from their vehicles and, or drivers. The deal, which Verizon expects to close in the fourth quarter, will see the mobile, cable and internet company pay $60 per share in cash, which represents a 40% premium to Friday's closing price. Fleetmatics is headquartered in Dublin, Ireland, with its North American base in Massachusetts. Shares of Fleetmatics were up more than 38% following the news, and are down more than 15% in the year to date. Verizon shares were down less than 1% in light premarket trade, but are up nearly 20% in the year, outperforming the S&P 500 Index , which is up more the 6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.