Hughes Telematics to Combine With Polaris in $700 Million All-Stock Deal
NEW YORK– Hughes Telematics, Inc. and Polaris Acquisition Corp. have signed a definitive merger agreement in an all-stock transaction valued at approximately $700 million. The transaction provides Hughes Telematics with access to added resources, including an additional $140 million in capital to fund the company's growth opportunities. This capital is in addition to the approximately $90 million invested to date by an affiliate of Apollo Management L.P.
Apollo, which will maintain its current stake in Hughes Telematics, has agreed, along with management and other Hughes Telematics shareholders, to a two-year lock-up and will continue to play an important role in guiding the company's management team. In addition, the founders of Polaris have a one-year lockup.
Hughes Telematics has long-term contracts with Chrysler Group and Mercedes-Benz USA, both of which are expected to begin implementing the Hughes Telematics solution in the second half of 2009 with the solution expected to be standard in nearly all of their U.S. production by 2012.
Hughes Telematics was recently awarded the "Best Embedded Telematics Service" at the awards program for the 8th Annual Telematics Detroit 2008 Conference & Exhibition.
For more information on the transaction, visit www.HTIPolaris.com.