Qualcomm to sell its subsidiary Omnitracs to Vista Equity Partners (Vista)
Qualcomm Incorporated on Friday said that it has sign an agreement with Vista Equity Partners (Vista), a U.S.-based private equity firm to sell its subsidiary Omnitracs, Inc.
Subject to the terms and conditions of the definitive agreement, Vista will purchase Omnitracs for $800 million in cash.
“In the late 1980′s, Qualcomm pioneered the use of commercial vehicle telematics with the introduction of the first mobile information system for transportation and logistics. 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,” said Derek Aberle, executive vice president and group president, Qualcomm Incorporated. “Vista’s long-term investment focus and experience helping software, data and technology-enabled businesses drive growth and leadership positions is a great fit for the Omnitracs business and management team. We look forward to witnessing their continued success together.”
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 chose to acquire Omnitracs because of its strong position, product offerings, loyal and satisfied customers, and its highly talented and devoted employees. 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. “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. The acquisition is expected to be completed during the first quarter of Qualcomm’s fiscal 2014.
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