Qualcomm to sell fleet tracking software division for $800M
Chip maker Qualcomm intends to sell its fleet management software unit to private equity group Vista Equity Partners for about $800 million in cash.
The deal, announced on Friday, includes Omnitracs operations in the U.S., Canada, and Latin America, as well as Sylectus and FleetRisk Advisors, which were acquired by the company in 2011.
The division includes software applications and services for private fleets, trucks, vehicles for hire. It provides critical fleet information through its mobile technology, as well as solutions for safety and compliance, driver retention, and GPS tracking.
"Today, the opportunity for fleet management and telematics is evolving rapidly, and we believe Omnitracs is well positioned to continue its leadership position as a stand-alone entity," Qualcomm executive vice president Derek Aberle said in prepared remarks.
Qualcomm has been increasingly focused on smartphone and tablet chips since the start of the smartphone and tablet boom. It sells wireless chips and other semiconductors to a range of customers, including Apple and Samsung, and generates revenue on license payments.
The San Diego, Calif.-based chipmaker recorded a 30 percent rocket in third-quarter profit in July on strong sales growth.
The deal, subject to closing conditions, is expected to close in the company's December quarter.