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The Deal: Qualcomm Divests Omnitracs For $800M

Stocks in this article: QCOM

NEW YORK ( TheStreet) -- Chipmaker Qualcomm (QCOM) said Friday it would sell its Omnitracs fleet management unit to Vista Equity Partners for $800 million in cash.

Omnitracs is a maker of chips and other tools that provide data and other systems for the transportation and logistics business. The unit was an early success inside Qualcomm, which was founded in the mid-1980s, but the San Diego-based seller has since evolved into a maker of chips for wireless telecommunications devices.

Qualcomm executive vice president Derek Aberle in a statement said that the company believes Omnitracs would benefit from being on its own.

"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 standalone entity," Aberle said. "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."

The deal includes all Omnitracs operations in the U.S., Canada and Latin America, including the Sylectus and FleetRisk Advisors units that Omnitracs acquired in 2011.

San Francisco-based Vista in a statement said it was drawn to Omnitrac's large customer base and competitive position, with the firm saying it believes it can help drive growth at the unit.

"We are impressed with the compelling value proposition Omnitracs' products and services offer their customers," Vista founder and CEO Robert Smith said. "We look forward to working with them and helping them to reach their full potential."

This is Vista's second large San Diego-area tech deal in recent months, following its May agreement to acquire Internet security company Websense (WBSN) for $907 million in cash.

Barclays is serving as financial adviser to Qualcomm. A Kirkland & Ellis team including partners David Breach, Stuart Casillas and John Lynn represented Vista.

-- Written by Lou Whiteman in New York

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