By SAABIRA CHAUDHURI CONNECT (WSJ)
Chip maker Qualcomm Inc. QCOM +0.70% said Friday it has agreed to sell its North and Latin American transportation and logistics business, Omnitracs Inc., to Vista Equity Partners for $800 million in cash.
"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," Qualcomm Executive Vice President Derek Aberle said.
The sale to the private-equity firm will include all of the unit's operations in the U.S., Canada and Latin America, including Sylectus and FleetRisk Advisors, which were acquired by Omnitracs in 2011.
Omnitracs offers software applications, computing platforms, and services for private and for-hire fleets. Its technology includes services for safety and compliance, driver retention, GPS fleet tracking, and fleet maintenance software.
The deal is expected to be close during the final quarter of this year.
In July, Qualcomm reported its fiscal third-quarter profit jumped 31% as the company reported strong growth in its sales of its wireless chips.
Qualcomm has been one of the main beneficiaries of the growing popularity of smartphones, as it supplies wireless processors for a broad range of customers that include Apple Inc. AAPL +0.75% and Samsung Electronics Co. 005930.SE +0.38% and collects money from license payments tied to its technology.
So Omnitracs (Vista) buys part of IDSY and Avis the other part. Total price of $9.50? From Avis's view they get resources concentrated just on their business.....no distractions. Vista gets more scale.