Verizon Communications Inc. announced it will acquire Hughes Telematics Inc., parent company of Networkfleet, for $12 per share in cash, or a total of $612 million.
Hughes Telematics offers a portfolio of location-based services for consumers, manufacturers, fleets and dealers through two-way wireless connectivity.
The transaction will expand Verizon's capabilities in the automotive and fleet telematics marketplace and accelerate growth in vertical segments, including emerging machine-to-machine services applications driven by consumer trends and increasingly connected lifestyles.
The merger is expected to close in the third quarter of 2012, and Verizon plans to 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. The business will continue to be headquartered in Atlanta.