US network operator Verizon has completed its acquisition of M2M player Hughes Telematics, saying the deal will help it to expand its capabilities in automotive and fleet telematics.
Hughes will become a part of Verizon Enterprise Solutions, which already provides M2M services to the automotive, transportation and healthcare industries, among others.
“M2M services are beginning to play a vital role reshaping the business landscape and setting new consumer expectations about establishing valuable connections in their vehicles, their homes and the world around them,” said John Stratton, president of Verizon Enterprise Solutions, in a press release. “This powerful combination will create a springboard for our clients to expand their business models and strengthen their customer relationships by creating new opportunities for connected services that address the increasingly sophisticated consumer and enterprise.”
Verizon agreed a fee of $612 million in cash for Atlanta-based Hughes back in June. Analysts have seen the deal as part of Verizon’s strategy to find new uses for its data communications network.
Verizon says the Hughes takeover will help it to offer platform-based solutions to specific industries. It expects to combine Hughes’ offerings with its own IP network, cloud, security and mobility technology platforms and thinks business customers will first be able to benefit from the tie-up later this year.
Besides catering to the automotive sector, Hughes also develops products and services for mhealth providers and users.
Although Verizon will operate Hughes as a subsidiary of Verizon Enterprise Solutions, it plans to retain Hughes’ existing management team and keep the business headquartered in Atlanta.