Verizon Communications has completed its acquisition of Hughes Telematics Inc. (HTI). Verizon is paying $12 a share under the deal, which works out to $612 million.
The deal will likely lead to accelerated growth and expanded services for Verizon Enterprise Solutions in auto, transportation, healthcare and other segments, the company said.
In addition, HTI will operate as a subsidiary of Verizon and as part of the Verizon Enterprise Solutions group, according to a report.
“This powerful combination will create a springboard for our clients to expand their business models and strengthen their customer relationships by creating new opportunities for connected services that address the increasingly sophisticated consumer and enterprise,” John Stratton, president of Verizon Enterprise Solutions, said in a company press release. “Machine-to-machine services are beginning to play a vital role reshaping the business landscape and setting new consumer expectations about establishing valuable connections in their vehicles, their homes and the world around them.”
It was also announced that Verizon plans to keep HTI’s current management. The business will still have its headquarters in Atlanta, as well.
HTI provides location-based services for consumers, manufacturers, fleets and dealers, according to an online company statement.
Verizon Enterprise Solutions is a sales and marketing organization that uses Verizon’s cloud, mobility and other platforms. It targets the enterprise market.
In other recent news, Verizon Communications Q2 net income increased 13 percent. There was growth in the company’s wireless business and an increase in its subscriber base, according to The Wall Street Journal.
In addition, Verizon reported a profit of $1.83 billion for the recently concluded Q2. That compares to $1.61 billion in the prior year. Revenue edged up 3.7 percent to $28.55 billion. Also, Verizon Wireless recently announced new data plans to capitalize on the increasing data use by customers.
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Edited by Brooke Neuman