Hughes Telematics and Polaris Acquisition Corp to merge

Hughes Telematics and Polaris Acquisition Corp to merge

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.

Apollo will retain its current stake in Hughes Telematics and has agreed to a two-year lock-up. Polaris's founders have a one-year lockup.

Hughes Telematics has signed long-term contracts with Chrysler Group and Mercedes-Benz USA, with both OEMs expected to begin implementing the Hughes Telematics solution in the second half of 2009. The solution is expected to be standard in nearly all of their US production by 2012.

Hughes Telematics was recently awarded the Best Embedded Telematics Service award at the 8th Annual Telematics Detroit 2008 Conference & Exhibition, the world's largest and most prestigious telematics conference.

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