Verizon Communications has closed its $612 million acquisition of HUGHES Telematics Inc. (HTI), which the carrier says sets it on a course to speed up growth through the delivery of advanced automotive and fleet telematics and machine-to-machine (M2M) services.
Adding HTI will expand and accelerate Verizon Enterprise Solutions’ capabilities for automotive, transportation, health care and other industries to uncover and launch new business opportunities, driven by safety improvements, consumer trends and increasingly connected lifestyles, the company said.
“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," said John Stratton, president of Verizon Enterprise Solutions. “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."
HTI is said to play a key role in Verizon's strategy to offer platform-based solutions tailored to specific industries. Later this year, businesses will be able to employ combinations of Verizon’s global IP network, cloud, security and mobility technology platforms with offerings from HTI’s advanced suite of services.
Verizon plans to retain HTI’s existing management team and operate the new unit as a subsidiary and as part of the Verizon Enterprise Solutions group. The business will continue to be headquartered in Atlanta.