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Friday, August 23, 2013

Qualcomm Selling Omnitracs Transportation and Logistics Business

As reported by Truckinginfo: Qualcomm announced it has signed a definitive agreement to sell its Omnitracs subsidiary to Vista Equity Partners, a U.S.-based private equity firm.

Omnitracs was a pioneer in in-cab communication, developing one of the first widely used satellite tracking and communications system for truck fleets, and today offers a variety of fleet management and telematics solutions.

The acquisition will include all of Omnitracs operations in the United States, Canada and Latin America, including Sylectus and FleetRisk Advisors, which were acquired by Omnitracs in 2011.

Vista will purchase Omnitracs for $800 million in cash. The deal is subject to federal anti-trust review and approval. Qualcomm says the acquisition is expected to be completed during the first quarter of its 2014 fiscal year.

Vista chose to acquire Omnitracs because of its strong position, product offerings, loyal and satisfied customers, and its highly talented and devoted employees, said Qualcomm in a statement.

“Leveraging its experience with numerous other vertically oriented software companies, Vista is uniquely qualified to help position Omnitracs for continued growth and will enable the company to strengthen and expand its product offerings.”

“We are long-term investors in enterprise software, data and technology-enabled businesses that are committed to being leaders in their fields,” said Robert Smith, chief executive officer and founder of Vista Equity Partners, in a statement.

Vista Equity Partners currently invests over $7.1 billion in capital in technology-based organizations.

“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,” said Derek Aberle, executive vice president and group president, Qualcomm Inc.