/>
X
Innovation

Verizon to acquire Hughes Telematics for $612m; eyes auto vertical

Verizon will pay $612 million for Hughes Telematics to double down on the automotive sector -- and the health one, too. It's all about the verticals
Written by Andrew Nusca, Contributor on

Verizon on Friday said it will pay $612 million for Hughes Telematics, an Atlanta-based firm that specializes in automotive computer systems.

If you haven't been keeping score at home, Verizon has been aggressively moving to cover various communications verticals -- healthcare, home, government, now automotive -- as the "Internet of Things" ramps up and more and more devices become connected.

Verizon basically admits as much in the press release:

HTI will play a key role in Verizon's strategy to offer platform-based solutions tailored to specific industries. Verizon earlier this year launched a new practice focused on developing telematics solutions that leverage the company's cloud and information technology (IT), security, global IP network and communications, and mobility and M2M technology platforms.

For in-car telematics, that means even more development of machine-to-machine (or M2M) services and applications that apply to safety (e.g. OnStar-like emergency services, or maintenance), convenience (e.g. voice-based text messaging) or straight up infotainment (weather, sports scores, stock prices, Internet music).

That's where Hughes comes in -- the company covers the commercial fleet, aftermarket and original equipment manufacturer segments. (Interestingly, it also offers products and services for mHealth. See? Verticals!) As Verizon, it will get increased global reach to pedal its wares.

The deal is expected to close in the third quarter of this year, after which Hughes will operate as a Verizon subsidiary within its Enterprise Solutions group. It will remain in Georgia.

Editorial standards

Related

How much RAM does your Windows 11 PC need?
adobestock-339222220

How much RAM does your Windows 11 PC need?

What is ChatGPT and why does it matter? Here's what you need to know
chat bot

What is ChatGPT and why does it matter? Here's what you need to know

Low-code is not a cure for overworked IT departments just yet
a-woman-looking-stressed-out-in-front-of-a-laptop-in-an-office-meeting-room

Low-code is not a cure for overworked IT departments just yet