A subsidiary of telecommunications giant Verizon, Verizon Telematics, has disclosed that it has acquired Spain’s Movildata Internacional. Movildata focuses on offering fleet management solutions while Verizon Telematics also offers business intelligence and vehicle tracking solutions aimed at cutting costs, improving productivity as well as assisting in monitoring the safety of drivers. Terms of the deal were not revealed.
“We see Movildata as a natural fit and highly synergistic with our European business. This strategic acquisition strengthens Verizon Telematics’ market position, accelerates growth and allows us to expand the footprint of our market-leading solutions and services,” the chief executive officer of Verizon Telematics, Andrés Irlando, said.
Across Europe Verizon Telematics has an established presence especially in countries such as Poland, France, Germany, the Netherlands, Ireland and the United Kingdom. In Spain Movildata is an established leader and the acquisition will assist the expansion strategy of Verizon Telematics especially in southern Europe particularly in Italy and Portugal.
Spain’s population of commercial vehicles is estimated to be over five million and this makes the country the second biggest commercial vehicle market in Western Europe per Berg Insight, an industry analyst. Additionally the fleet management solutions market is significantly underpenetrated vis-à-vis other European markets and this represents a huge opportunity for growth.
Employees of Movildata will be absorbed by Verizon Telematics and are expected to continue driving support and sales for the latter’s fleet management products. Verizon Telematics will also launch its Fleetmatics Reveal software solution for fleet operators in Spain.
The acquisition of Movildata by Verizon Telematics comes in the wake of the latter’s parent company releasing its quarterly financial report which beat estimates. The report also indicated that the telecommunications giant also increased the number of phone subscribers. Currently Verizon is the No. 1 wireless carrier in the United States.
Though Wells Fargo analysts had expected Verizon to add 320,000 phone subscribers the wireless carrier instead added 431,000. Verizon also indicated that the overhaul of the tax code in the United States which saw the corporate tax rate reduced from 35% to 21% will boost the cash flow of the company from operations this year by between $3.5 billion and $4 billion.
Following the tax cuts Verizon now plans to offer majority of its employees shares instead of cash bonuses like other firms are doing. Most employees, excluding top management, will get 50 shares translating to approximately $2,600 each.