SAN DIEGO, Aug. 23, 2013 /PRNewswire/ -- Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has signed a definitive agreement to sell Omnitracs, Inc., a subsidiary of Qualcomm Incorporated, to Vista Equity Partners (Vista), a U.S.-based private equity firm. Subject to the terms and conditions of the definitive agreement, Vista will purchase Omnitracs for $800 million in cash.
"In the late 1980's, Qualcomm pioneered the use of commercial vehicle telematics with the introduction of the first mobile information system for transportation and logistics. As one of Qualcomm's earliest businesses, Omintracs has maintained a leadership position within the industry for 25 years. Today, 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," said Derek Aberle, executive vice president and group president, Qualcomm Incorporated. "Vista's long-term investment focus and experience helping software, data and technology-enabled businesses drive growth and leadership positions is a great fit for the Omnitracs business and management team. We look forward to witnessing their continued success together."
The acquisition will include all of Omnitracs operations in the United States, Canada and Latin America, including Sylectus and FleetRisk Advisors, which were acquired by Omnitracs in 2011.
Vista chose to acquire Omnitracs because of its strong position, product offerings, loyal and satisfied customers, and its highly talented and devoted employees. Leveraging its experience with numerous other vertically oriented software companies, Vista is uniquely qualified to help position Omnitracs for continued growth and will enable the company to strengthen and expand its product offerings.
"We are long-term investors in enterprise software, data and technology-enabled businesses that are committed to being leaders in their fields," said Robert Smith, chief executive officer and founder of Vista Equity Partners. "We are impressed with the compelling value proposition Omnitracs' products and services offer their customers. We look forward to working with them and helping them to reach their full potential."
The closing of the transaction is conditioned upon, among other things, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The acquisition is expected to be completed during the first quarter of Qualcomm's fiscal 2014.
Barclays Capital Inc. is serving as financial advisor to Qualcomm.
About Qualcomm 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.
About Vista Equity Partners Vista Equity Partners, a U.S. based private equity firm with offices in San Francisco, Chicago and Austin, currently invests over $7.1 billion in capital committed to dynamic, successful technology-based organizations led by world-class management teams with long-term perspective. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. Vista's investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing. For further information please visit www.vistaequitypartners.com.
This news release contains forward-looking statements that are subject to risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Qualcomm or Omnitracs could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits and costs of the transaction; management plans relating to the transaction; the expected timing of the completion of the transaction; the parties' ability to complete the transaction considering the various closing conditions, including any conditions related to regulatory approvals; any statements of the plans, strategies and objectives of management for future products and operations; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits of the transaction may not materialize as expected; that the transaction may not be timely completed, if at all; as well as the other risks detailed from time to time in Qualcomm's SEC report, including Qualcomm's report on Form 10-K for the year ended September 30, 2012 and Quarterly Report on Form 10-Q for the third quarter ended June 30, 2013 filed with the SEC. Qualcomm does not undertakes any obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
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SOURCE Qualcomm Incorporated