US telecoms giant Verizon Communications Inc (NYSE:VZ) is buying GPS tracking company Fleetmatics Group PLC (NYSE:FLTX) for about US$2.4bn.
Verizon has agreed to pay US$60 a share for Fleetmatics, which has developed a wide range of software-as-a-service (Saas) products for small and medium-sized businesses.
It plans to merge Fleetmatics with the recently acquired Telogis and its own business in the sector, Verizon Telematics.
The telecoms giant is already buying Yahoo for US$5bn to boost its internet service business.
Fleetmatics has 1,200 staff serving more than 37,000 customers and about 737,000 subscribers.
Verizon Telematics chief executive Andrés Irlando said: ““Fleetmatics is a market leader in North America – and increasingly internationally.”
Fleetmatics chairman and chief executive Jim Travers said: “Verizon and Fleetmatics share a vision that the Saas-based fleet management market is extraordinarily large, lightly penetrated, global and fragmented which can best be attacked together.”