Verizon announced Monday it's finalized its buyout of Hughes Telematics, Inc., in a move to expand the company's reach.
The deal was first announced last month, with Verizon paying $12 per share to purchase the firm for a total of $612 million.
The merger was approved and finalized Monday, with Hughes Telematics continuing to operate as a wholly owned subsidiary of Verizon Wireless.
Hughes Telematics specializes in machine-to-machine communications, primarily in the automotive industry.
Verizon takes to the road
Its technology is used in everything from tracking miles per gallon data and offering roadside assistance for commercial cars to the GPS tracking and coordinating of truck fleets.
Verizon plans to expand its services with new ones tailored to specific industries that will incorporate Verizon's global network and cloud services with the services and technology of Hughes Telematics.
In a press release, the company says the Hughs Telematics will help accelerate its "capabilities for automotive, transportation, health care and other industries to uncover and launch new business opportunities, driven by safety improvements, consumer trends and increasingly connected lifestyles."
No specific new products or services have been named, but given Hughes Telematics' expertise, the most natural fit would be to expand on Hughes' existing roadside assistance and trucker networks through Verizon.
The merger can offer new opportunities as well, so cars fully integrated into Verizon's network may not be too far off in the future.
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