I.D. Systems, Inc. (NASDAQ: IDSY), a provider of enterprise asset management and Industrial Internet of Things (IoT) technology, acquired Pointer Telocation Ltd. (NASDAQ: PNTR) (TASE: PNTR), a Rosh Ha’ayin,
Israel-based provider of telematics and mobile IoT solutions, for approximately $140m.
The total consideration of $140m is comprised of approximately $72m in cash and approximately 11m shares of PowerFleet, Inc., a newly-created holding company. The acquisition is expected to close in the Summer of 2019.
The transactions will be funded through a combination of:
– a $50 million convertible preferred equity investment by Abry Partners; and
– a $30 million debt financing and a $10 million revolving credit facility by Bank Hapoalim.
In conjunction with the funding, John Hunt (Managing Partner) and Anders Bjork (Principal) of Abry Partners will join the PowerFleet Board of Directors.
I.D. Systems CEO Chris Wolfe, and CFO Ned Mavrommatis, will lead combined company with Pointer CEO David Mahlab, to serve as CEO International and as a member of the PowerFleet Board of Directors. Pointer CFO Yaniv Dorani will serve as Deputy to CEO International.
The combined company is expected to be dual listed on Nasdaq and the Tel Aviv Stock Exchanges under the rebranded PowerFleet name.
Pointer Telocation is a provider of innovative telematics and mobile IoT solutions to the automotive, insurance and logistics (cargo, assets and containers) industries. Its cloud-based software-as-a-service (SaaS) platform, which has more than 275,000 monthly subscriber units, extracts and captures data from an organization’s mission critical mobility points, including drivers, routes, points-of-interest, logistics network, vehicles, trailers, containers and cargo. Pointer’s platform then analyzes and converts this data into actionable intelligence optimizing customers’ assets and improving profitability.
The technology is currently deployed in approximately three million light and heavy commercial vehicles across 80 countries.
Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Florida, Germany and the United Kingdom, I.D. Systems is a global provider of wireless M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets such as industrial vehicles, rental cars, trailers, containers, and cargo.
The company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability.