Verizon Communications Inc. (NYSE: VZ) is continuing its campaign to diversify its businesses with its most recent acquisition of Fleetmatics Group PLC (NYSE: FLTX). Verizon recently made a play for Yahoo as well. So, it appears that Verizon is moving toward becoming a mega-data and internet company that happens to do telecom as well. This is even more apparent with the divestitures of the company’s landlines.

The companies announced a definitive agreement under which Verizon will acquire Fleetmatics for $60 per share in cash, valuing the transaction at roughly $2.4 billion.

The acquisition is subject to customary regulatory approvals and closing conditions, including the approval of Fleetmatics’ shareholders and the sanction of the way Verizon will acquire Fleetmatics by the Irish High Court, and it is expected to close in the fourth quarter of 2016.

Ultimately, what Fleetmatics is looking to bring to Verizon is over 37,000 customers, roughly 737,000 subscribers, a broad portfolio of industry leading products and a team of 1,200 professionals.

Andrés Irlando, CEO of Verizon Telematics, commented:

Fleetmatics is a market leader in North America — and increasingly internationally — and they’ve developed a wide-range of compelling SaaS-based products and solutions for small- and medium-sized businesses.

The powerful combination of products and services, software platforms, robust customer bases, domain expertise and experience, and talented and passionate teams among Fleetmatics, the recently-acquired Telogis, and Verizon Telematics will position the combined companies to become a leading provider of fleet and mobile workforce management solutions globally.

Jim Travers, board chair and chief executive of Fleetmatics, added:

Verizon and Fleetmatics share a vision that the SaaS-based fleet management solution market is extraordinarily large, lightly penetrated, global and fragmented which can best be attacked together with a world class product offering and the largest distribution channel in the industry.

Shares of Verizon were trading at $55.29 Monday morning, with a consensus analyst price target of $54.04 and a 52-week trading range of $38.06 to $56.95.

Fleetmatics traded up about 40% at $59.69. The consensus price target is $51.43, and the 52-week range 9s $34.41 to $62.86.

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