Qualcomm Inc signed a definitive agreement with Vista Equity Partners to sell Omnitracs Inc. Qualcomm announced that the private equity firm would purchase their subsidiary for USD 800 million cash. Vista Equity would buy all operations of Omnitracs in the US, Canada and Latin America. The purchase would also include FleetRisk Advisors and Sylectus, two firms of which Omnitracs bought two years ago. Omnitracs is Qualcomm's fleet management and telematics firm. The transaction is expected to close in the first quarter of next year after obtaining regulatory clearances.
Qualcomm's Executive Vice President and Group President Derek Aberle said, "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."
For their part, Vista Equity chose to buy Omnitracs because of its leading position in the industry and its products. Chief Executive Officer and Founder Robert Smith said, "We are long-term investors in enterprise software, data and technology-enabled businesses that are committed to being leaders in their fields. We are impressed with the compelling value proposition Omnitracs' products and services offer their customers."
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