Qualcomm Incorporated has signed a definitive agreement to sell its fleet management and tracking business Omnitracs to Vista Equity Partners for $800 million in cash.
The acquisition will include all of Omnitracs operations in the U.S., Canada and Latin America, including Sylectus and FleetRisk Advisors, which were acquired by Omnitracs in 2011. The transaction is expected to be completed during the first quarter of Qualcomm’s fiscal 2014.
Omintracs, formerly known as Qualcomm Enterprise Services, provides integrated fleet management applications, services and platforms to transportation and logistics companies. The company provides solutions for safety and compliance, driver retention, GPS fleet tracking, and fleet maintenance software.
“In the late 1980s, Qualcomm pioneered the use of commercial vehicle telematics with the introduction of the first mobile information system for transportation and logistics,” said Qualcomm executive vice president Derek Aberle. “As one of Qualcomm’s earliest businesses, Omintracs has maintained a leadership position within the industry for 25 years. 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.”
“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. “We are impressed with the compelling value proposition Omnitracs’ products and services offer their customers. We look forward to working with them and helping them to reach their full potential.”
The closing of the transaction is conditioned upon, among other things, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.