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Verizon to buy Hughes Telematics for $612M

10:52 AM, Jun 1, 2012   |    comments
Photo by Justin Sullivan, Getty Images.
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NEW YORK -- Verizon Communications Inc. says it's paying $612 million for a company that provides wireless connectivity to cars and trucks.

The New York company said buying Hughes Telematics Inc. expands its ability to offer wireless services to cars. Verizon already provides wireless connectivity to General Motors Co.'s OnStar service.

Verizon is paying $12 per share for Hughes, more than double the Atlanta company's closing price Thursday in the thinly traded over-the-counter market.

Most of Hughes' revenue comes from fleet management equipment and services for customers like trucking companies. But Verizon said the company's technology has the potential to go beyond the auto and transportation markets, with opportunities to grow into healthcare, finance and products for the home.

Verizon shares dipped 18 cents to $41.46 in morning trading.

Associated Press

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