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(Associated Press)

Verizon to Buy Fleetmatics for About $2.4B

Industries Dow Jones Newswires

Verizon Communications said Monday that it agreed to acquire mobile workforce-solutions company Fleetmatics Group in a cash deal valued at roughly $2.4 billion, widening Verizon's fleet operations as it looks to diversify. 

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The deal, at $60 a share in cash, represents a nearly 40% premium to Fleetmatics closing price Friday of $42.96. 

Shares of Fleetmatics rose 39% to $59.85 in premarket trading. Verizon stock, up 20% this year, was inactive in premarket trading. 

Fleetmatics' web-based solutions allow fleet operators to monitor vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce. The Dublin-based company has roughly 737,000 subscribers and 1,200 employees. Its North American headquarters are in Waltham, Mass. 

Last week, Verizon closed its acquisition of mobile enterprise management software company Telogis, Inc. 

That transaction, as well as the Fleetmatics deal, came amid Verizon's bidding for Yahoo Inc., which it last week agreed to buy for $4.8 billion. 

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The Fleetmatics transaction, subject to regulatory approvals and closing conditions such as the approval of Fleetmatics shareholders, is expected to close in the fourth quarter. 

Write to Joshua Jamerson at joshua.jamerson@wsj.com