Verizon is buying this Irish GPS company for $2.4bn

Billy Bambrough
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The $60 per share that Verizon has offered is a 40 per cent premium to Fleetmatics’ closing price on Friday (Source: Getty)

Verizon's buying spree hasn't ended with Yahoo.

Verizon has now made a cash offer for Irish GPS vehicle tracking company Fleetmatics for $2.4bn (£1.8bn).

The US telecoms giant is looking to expand into internet connected devices as it grows its business away from its core mobile market.

Fleetmatics' shares leaped by 39 per cent to $59.69 following the announcement, though investors sent Verizon shares down by 0.1 per cent to $55.37.

Read more: Yahoo + AOL = Verizon's online media now has more eyeballs than Google

Andrés Irlando, chief executive of Verizon Telematics, said:

Fleetmatics is a market leader in North America - and increasingly internationally - and they've developed a wide-range of compelling software-as-a-service-based products and solutions for small- and medium-sized businesses.

Fleetmatics brings over 37,000 customers, approximately 737,000 subscribers, a broad portfolio of industry leading products, and a team of 1,200 professionals focused on solving the critical challenges of businesses that deploy mobile workforces.

We are excited to partner with Verizon in fulfilling the mission of becoming the largest mobile workforce management company in the world.

Fleetmatics is headquartered in Dublin and has a global headcount of 1,200. In May it posted revenue of $78.9m for the first quarter, up 21 per cent from a year earlier.

In June, Verizon Telematics also announced the acquisition of Telogis, a US cloud-based mobile enterprise management software company.

Last week Verizon reported a more than five per cent drop in revenue, following its successful $4.83bn bid for internet business of Yahoo.

The deal includes Yahoo's online search, Yahoo Mail and instant messaging, and its ad business.

Read more: The bids are in, but what is Yahoo's value to a buyer?

Several firms were circling Yahoo after it announced it was putting itself up for sale earlier this year. Yahoo once had a valuation of more than $100bn.

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