Automatic vehicle location technology developer Pointer Telocation Systems Ltd. (Nasdaq:PNTR; TASE:PNTR) is expanding its global operations to reach Romania.
A Pointer sub-subsidiary, SC Pointer SRL, has signed a two year contract, beginning October 1, with a large Romanian-based gasoline company that will offer the services to its customers.
SC Pointer is a unit of Pointer subsidiary Shagrir.
The deal is valued at € 2 million.
Pointer CEO Danny Stern said, "Operating in Romania is a step in Shagrir's strategic growth plan to duplicate its vast knowledge and experience in service providing".
Shagrir provides road side assistance, stolen vehicle recovery, and fleet management services to over 750,000 customers in Israel.
Pointer also signed with a Hungarian company to provide technology for fleet management services in Hungary. Pointer will have an option to become a shareholder in the company in accordance with the terms of the agreement.
Shares in Pointer fell 0.8% to $5.67 in Nasdaq trading on Monday. The firm has a market value of $26.1 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2008
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