Verizon is trying its best to prove the US telco market is still cash-rich as the country’s market leader broke out the cheque-book to acquire Fleetmatics for $2.4 billion.

Share price in the Irish fleet management company increased by roughly 40%, as Verizon seemingly continues on its journey to diversify its business offering. The news comes only a month after Verizon announced it acquired Telogis for an undisclosed amount. Although the telco has been relatively slow to mobilize in the connected cars space, it would appear the team is no-longer sitting on its hands as both acquisitions will boost its footprint in the potentially lucrative sub-sector.

“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,” said Andrés Irlando, CEO of Verizon Telematics.

“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.”

Over the last few months, Verizon has been seeing its profits eroded due to competition in the phone market increasing under the influence of OTT’s and new market players. Moves like this demonstrate the team’s desire to acquire new revenue streams, with the IoT space a credible target.

Verizon Telematics currently operates in 40 markets worldwide, offering a range of software and hardware solutions. Fleetmatics solutions, which offer visibility into vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce, will now be incorporated into the wider Verizon business.