Qualcomm sells Omnitracs for $800 mn

Qualcomm has announced sale of Omnitracs, a subsidiary of Qualcomm to Vista Equity Partners (Vista), a US based private equity firm for approximately $800 million in cash.

“Omnitracs was one of Qualcomm’s earliest businesses and has been a leader in fleet management and telematics for more than 25 years. We would like to thank all of the employees, suppliers and customers for helping make Omnitracs a success, and look forward to many more years of accomplishments,” said Derek Aberle, executive vice president and group president, Qualcomm.

The sale includes all of Omnitracs’ operations (transportation and business) in the United States, Canada and Latin America.

The sale will result in an estimated $0.22 to $0.25 per share gain and will be reported in Qualcomm’s first fiscal quarter.

Barclays Capital served as financial advisor to Qualcomm. Jack Kennedy, who served as president of Omnitracs since January and helped drive the successful sale process will stay with Qualcomm and continue to lead the evaluation of strategic alternatives for the remaining European operations that were previously part of Omnitracs.

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