Qualcomm Inc. today announced that the sale of Omnitracs, Inc., a subsidiary of Qualcomm Incorporated, to Vista Equity Partners (Vista), a U.S.-based private equity firm, has been finalized. The agreement to sell the transportation and logistics business for approximately $800 million in cash was originally announced in August.
"Omnitracs was one of Qualcomm's earliest businesses and has been a leader in fleet management and telematics for more than 25 years. We'd 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 Incorporated.
The sale includes all of Omnitracs' operations 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 Inc. served as financial advisor to Qualcomm. Jack Kennedy, who served as President of Omnitracs, Inc. 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.
Qualcomm Incorporated (NASDAQ: QCOM) is the world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm's website, OnQ blog, Twitter and Facebook pages.