On 8/1 BMO, Verizon announced that it is set to acquire mobile IoT leader Fleetmatics (FLTX) for $2.4bn. We view the purchase: 1) as a strong strategic fit, especially in light of VZ’s recent Telogis purchase (Verizon is now the clear leader in the N.A. mobile IoT), 2) as being largely about adding new subscribers onto VZ’s network today (at better margins than FTLX currently delivers), with the likelihood of high margin enterprise applications to follow, and 3) as suggesting the positioning of competitors Calamp (CAMP) and Trimble (TRMB) is underappreciated by investors. We look for additional mobile IoT deals to happen as others wake up to what Verizon understands about the strategic value of the space.