Verizon to buy Fleetmatics for about $2.4 billion

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Monday, August 1, 2016

NEW YORK -- Verizon says it plans to pay about $2.4 billion to buy Fleetmatics, which makes software used by cable companies, energy providers and others to manage their fleets of vehicles.

Verizon will pay $60 for each share of Fleetmatics, a nearly 40 percent premium of the stock's closing price of $42.96 Friday.

Fleetmatics, based in Dublin, said it has more than 37,000 customers that use its software to track the location of vehicles driven by workers.

The new deal comes a week after New York-based Verizon said it would pay $4.8 billion to buy Yahoo Inc.'s websites, apps and other internet property.

Shares of Verizon Communications Inc. slipped 11 cents to $55.30 about 30 minutes ahead of the market Monday while Fleetmatics Group PLC jumped 39 percent to $59.67 in premarket trading.