Fleetmatics buyout shows shift in telecoms’ priorities

Verizon’s $2.4bn (€2.14bn) acquisition of Dublin-based Fleetmatics represents not only a major win for the Irish software sector but a continued shift by telecom companies feeling the pinch in traditional business sectors.

The US communications giant agreed on Monday to part with $60 per Fleetmatics share - a significant premium of about 40% on Friday’s closing price - to buy the Irish GPS tracking company founded by Peter Mitchell in 2004.

Fleetmatics’ software-as-a-service (SaaS) offering tracks truck fleets’ location, fuel usage, speed and mileage to improve efficiency and safety.