Local Atlanta company Hughes Telematics has been in the automotive data space since before it was cool. Today Verizon announces that it has purchase Hughes Telematics for $612 million in cash to add the company’s machine-to-machine (M2M) connected car technologies and services to its existing capabilities.
“Hughes spans the whole automotive industry. It sells embedded security and infotainment services to Mercedes Benz and Volkswagen. It designs the technology behind State Farm Insurance’s Drive Safe & Save program, which allows it to monitor its customers driving behavior in order to adjust their premiums. It sells fleet tracking and fleet management services to enterprises and industry. Hughes has even expanded beyond the automotive business and into healthcare, providing an emergency response bracelet for seniors through its Lifecomm division.”
“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.
“Joining Hughes Telematics’ robust service-delivery platform and suite of applications with our existing assets will create a premier set of capabilities. 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.”
Jeff Leddy, CEO of HTI, said, “This transaction provides Hughes Telematics’ stockholders with a substantial premium over today’s market price of our common stock. We are proud to join a world-class organization like Verizon which will help us continue to build and expand on our industry-leading services.
This combination represents an exciting opportunity to accelerate our innovation of new services and global growth and to bring these services to more customers and industries worldwide.”
HTI is mainly known for its automotive work but does have significant exposure in the connected health segments. It will be interesting to see how their product lines get integrated into Verizon’s existing and new product offerings.