Verizon Communications Inc. (VZ - Free Report) announced the acquisition of LQD WiFi LLC -- a New York-based firm specializing on Internet of Things (IoT) technology. With the acquisition, Verizon intends to deliver WiFi related public safety features for urban areas and upcoming smart cities. Notably, Verizon has been forging ahead with its new growth and innovation plans in the IoT. The financial terms of the deal have been kept under wraps.
Benefits of the Buyout
With the purchase of LQD WiFi, Verizon seeks to capture opportunities related to civic innovation and IoT. LQD WiFi presently develops outdoor interactive displays that provide WiFi connectivity along with news, emergency alerts and community information. Additionally, the technology possesses the ability to collect crowd, weather and other data through its sensors placed in the display. Verizon believes that LQD’s technology will help it provide traffic management solutions for cities. Moreover, the company is developing solutions for municipalities, private developers, academic institutions and entertainment venues.
Recent IoT Events
This September, Verizon entered into a partnership with Qualcomm Technologies, Inc., a subsidiary of Qualcomm Inc. (QCOM - Free Report) , to develop its IoT platform, ThingSpace. Meanwhile, Verizon’s rival AT&T Inc. (T - Free Report) partnered with Cisco Systems, Inc. (CSCO - Free Report) to launch an all-in-one IoT Starter Kit. Notably, these telecom companies are looking for alternative sources of revenue to offset decline in their legacy businesses like fixed-line services.
Verizon has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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