Skip to content
Search AI Powered

Latest Stories

newsworthy

Verizon buys Fleetmatics for $2.4 billion

Telco expands logistics services with telematics and mobile workforce management.

Telecommunications giant Verizon Communications Inc. has acquired the GPS vehicle-tracking company Fleetmatics Group PLC for $2.4 billion, continuing to expand beyond its roots as a telephone service provider by adding vehicle telematics and mobile workforce-management tools.

New York City-based Verizon has been on a spending spree in recent months, buying online media pioneer Yahoo Inc. last week for $4.8 billion and the telematics and navigation-systems provider Telogis Inc. in June for an undisclosed amount.


Fleetmatics, based in Dublin, Ireland, with its North American headquarters in Waltham, Mass., will join Telogis and Verizon's own Networkfleet product in the Verizon Telematics division. Verizon Telematics is a San Diego-based subsidiary that targets automobiles and fleets with connected services such as security, productivity, convenience, and infotainment./p>

The deal is expected to close in the fourth quarter of 2016, after passing regulatory and shareholder approvals.

Verizon values Fleetmatics for its range of software as a service (SaaS)-based products for small and medium-sized business, Verizon Telematics CEO Andres Irlando said in a statement. Combining those products with Telogis' related software platforms, customer bases, and domain expertise "will position the combined companies to become a leading provider of fleet and mobile workforce-management solutions globally," Irlando said.

Fleet operators that subscribe to a web-based SaaS solution like Fleetmatics' can track the performance of their mobile assets without hosting the requisite computer servers and information technology staff in their own offices.

The new acquisition allows Verizon Telematics to broaden its coverage of the fleet-management market, selling Telogis products to large enterprise companies, Networkfleet and Fleetmatics services to small and mid-sized businesses, and both Telogis and Fleetmatics products to long-haul carriers, Verizon spokesperson Marie McGehee said.

For each of those segments, Verizon Telematics now offers both vehicle telematics such as location, fuel consumption, speed, and mileage, and also workforce-management data such as schedules, routes, compliance, and human resources data, McGehee said.

By joining Verizon Telematics, Fleetmatics and Telogis will now be part of Verizon's Internet of Things division, a growing business segment that generated $205 million in revenue for the second quarter of 2016, a 25-percent increase over that period last year, she said.

That segment of the transportation market is forecast to continue its rapid growth, so Verizon had good timing in acquiring Fleetmatics, said Tony Wayda, supply chain practice senior director and principal at Boulder, Colo., consulting firm SCApath.

"Verizon have been trying to penetrate this market for years. I think it is a wise move. With the latest acquisitions they become a solution provider, not a commodity of cellular voice and data plans," Wayda said.

As Verizon continues to expand its portfolio of services for logistics fleet management, its greatest test will be developing support for advanced optimization services such as the routing and scheduling tools offered by Omnitracs LLC or Descartes Systems Group Inc.

In the meantime, Verizon is now well positioned to offer its expanded services to small and mid-sized companies, Wayda said. "With the growth of the mobile workforce, the ability to utilize GPS location, geofencing, and ECM data (speed, idle, fuel, etc.) will help them become a viable, low-cost-of-entry option for small to medium businesses. There is no reason they cannot expand that to large companies," Wayda said.

The Latest

More Stories

image of digital city

Accenture acquires German management consulting firm Staufen AG

The consulting firm Accenture has acquired Staufen AG, a German management consulting firm, saying the move will expand Accenture’s capabilities to drive operational excellence and competitiveness in manufacturing and supply chains.

Specifically, adding Staufen will help Accenture serve clients in discrete manufacturing industries including automotive, aerospace and defense, industrial goods, and medical equipment.

Keep ReadingShow less

Featured

chart of US imports

NRF: Container imports remain high after Trump tariff threats

Days after tariff threats by the Trump Administration against Canada and Mexico were paused for a month, imports at the nation’s major container ports are expected to remain high, as retailers continue to bring in cargo ahead of the new deadline and to cope with elevated tariffs on China that did occur, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

Part of the reason for that situation is that companies can’t adjust to tariffs overnight by finding new suppliers. “Supply chains are complex. Retailers continue to engage in diversification efforts. Unfortunately, it takes significant time to move supply chains, even if you can find available capacity,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release.

Keep ReadingShow less

AI: Is it the real deal?

Having reported on the supply chain world for some 25 years, I've seen technologies come and go. Many were once touted as the best thing since sliced bread but either failed to live up to the hype or else had to simmer a few years before they caught on.

Remember the hoopla surrounding dot-com retail? In the late 1990s, we were told that stores as we knew them would eventually go away, to be totally replaced by online shopping. The ease and convenience of e-commerce made that a reasonable expectation. But in March 2000, the bubble burst, and a host of online retailers closed their virtual doors forever. Of course, online shopping is still very much with us, and its share of total retail sales is growing by the year. Maybe we'll get to that retail seventh heaven someday, but it's taking much longer than originally predicted.

Keep ReadingShow less
Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

Keep ReadingShow less
Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

Keep ReadingShow less