Semiconductor technology firm Qualcomm Inc. said it has sold its transportation and logistics business, Omnitracs, to Vista Equity Partners for $800 million. This includes the Commercial Motor Vehicle tracking or "telematics" systems.
The acquisition by Vista Equity Partners will include all Omnitracs operations in the United States, Canada and Latin America as well as the companies it purchased in 2011, Sylectus and FleetRisk Advisors, according to the company.
“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.
Qualcomm said it expects the sale to be completed during the first quarter of its 2014 fiscal year.
Omnitracs is part of Qualcomm’s Wireless & Internet segment, or QWI. Omnitracs has not been making the company a profit. The division posted a fiscal third-quarter loss of $16 million before tax, compared with a loss of $6 million in the same quarter last year. QWI revenue slipped 1% to $158 million.
