Published: June 22, 2016| New York, US
Verizon Communications Inc.(a subsidiary of Verizon Telematics) has signed an agreement to acquire Telogis, Inc. In connection with the transaction, PJT Partners and Wells Fargo Securities, LLC acted as financial advisors and Debevoise & Plimpton acted as legal advisor to Verizon.
Established in 2001, Telogis, Inc., has been providing connected intelligence including location based information and services. With its global presence in more than 100 countries beyond United States in Europe, Australia and Latin America as well as development centers in Austin, Texas; Toronto; and Christchurch, New Zealand, it will bring global customers and understanding of this domain to Verizon.
Verizon Communications formerly known as Bell Atlantic Corporation(founded in 1983) and changed its name to Verizon Communications Inc. in June 2000 generated in revenue $132 billion in 2015. It operates America’s most reliable wireless network, with 112.6 million retail connections nationwide and delivers integrated business solutions to customers worldwide.
Till last year, Verizon and Telogis were in a tough competition with each other and both were generating revenues. However, after the news of this acquisition surfaced, it would not be wrong to say that a new class of company in Verizon would emerge, and the customer should be the ultimate winner in this battle. For startups who are rebuilding the logistics & transportation scenario worldwide, it would be an interesting development.
Andrés Irlando, CEO of Verizon Telematics, said:
With a comprehensive enterprise product portfolio and partnerships with some of the world’s leading vehicle and equipment manufacturers, Telogis brings a world-class software platform and new distribution relationships to Verizon Telematics’ already expansive suite of connected vehicle solutions for consumers and enterprise customers. The combined strengths of our two companies’ unique assets better enable us to deliver best-in-class mobile enterprise management services to customers globally, while building scale and accelerating market share. I’m confident that the passion and talent of our collective employees will continue to drive revenue growth and product innovations to shape and lead the industry for years to come.
While the terms of this transaction have not been disclosed, the acquisition is subject to customary regulatory approvals and is expected to close in the second half of 2016. Barclays and J.P. Morgan acted as financial advisors and Paul Hastings LLP acted as legal advisor to Telogis.
David Cozzens, CEO, Telogis, said:
Verizon provides the brand equity, strength in the market, broad infrastructure and expansive global reach to take Telogis to the next level. This strategic acquisition positions our collective technologies and services uniquely in the market while also enabling Verizon Telematics’ industry-leading business to benefit from Telogis’ unmatched strength in the enterprise market, innovative Mobile Enterprise Management software platform and our strong OEM and ecosystem partnerships.
With this agreement, Verizon is trying to strengthen its position specifically in connected vehicle and mobile enterprise management sectors as Telogis is known to provide best-in-class Software-as-a-Service (SaaS) technology and services. Through these mergers and alliances, telematics and in-car enterprise services are continuously racing in sync with the other solutions.