Verizon Communications Inc. (NYSE:VZ) has signed an agreement to acquire Sensity Systems Inc., further strengthening its plans of becoming a leader in the internet of things (IoT) market. Although the exact details of the transaction haven’t been disclosed, the acquisition is expected to go through by the end of the fourth quarter this year, subject to customary regulatory approvals. Following the announcement, shares of the telecom giant have been trading up 0.83% at $52.25 at 1:08PM EDT.
Verizon’s Senior Vice President, Enterprise Products and IoT, Mike Lanman said: “Sensity is a leading provider of IoT solutions for smart communities with a strong ecosystem of partners, and this transaction will accelerate the deployment of large-scale implementations that will drive the digital transformation of cities, universities and venues. Verizon is uniquely positioned through its infrastructure investments at the network, platform and application levels to provide holistic solutions that empower communities to address their most pervasive challenges.”
Sensity Systems exploits LED Lighting to create sensor-based, high-speed multi service IoT platforms. The company already has 42 of its Smart City programs installed worldwide through an ecosystem of partners. The highly innovative company provides municipal lighting owners a link to improve the use of energy with cost savings, and other business goals such as asset management, analytics, parking control and public safety. In addition, the World Economic Forum has recognized Sensity as a Technology Pioneer and one of the world’s most innovative companies.
The announcement comes as part of a bigger plan the telecom giant is pursuing. Verizon is looking to add a leading and inclusive suite of smart city solutions empowered by its Thing Space internet of things (IoT) platform to better help increase economic development and drive citizen engagement while enabling sustainability for communities. The company has already developed an array of connected intelligent solutions including traffic management, lighting, parking and security that enhances public safety for local communities, livability and resiliency. Additionally, the telecom giant is also further simplifying the creation of IoT applications through Thing Space.
Over the past year or so, Verizon has been increasing its efforts to diversify its revenues from the highly saturated telecom market. Although, the company is already a leader in the industry, the telecom carrier has felt the increasing saturation in the market, especially with other mobile carriers increasing their discount offerings. This year alone, Verizon has been on a spree of acquisitions; the telecom giant has taken over a number of companies including media related companies and corporations specializing in the internet of things.