Verizon has agreed to acquire in-car technology company Hughes Telematics for $612 million, the two companies announced Friday.
The deal will make it possible for Verizon to expand its offerings in machine-to-machine (M2M) applications and connected apps that bridge the gap between phones and cars. Verizon will pay $12.00 per share in cash for the deal, a massive premium over Hughes’ Thursday closing price of $4.35 per share.
“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, in a statement. “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.”
Pending regulatory approval, the deal is expected to close some time in the third quarter of this year. Verizon intends to operate Hughes as a subsidiary within Verizon’s Enterprise Solutions group. It will keep on Hughes’ exiting management team.
If you’re feeling like a Friday laugh, you can watch a poorly acted video showing off Hughes Telematics’ capabilities below.
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