US enterprise asset management and Industrial Internet of Things (IoT) technology developer I.D. Systems Inc. (NASDAQ: IDSY) has entered into a definitive agreement to acquire Israeli telematics and mobile IoT solutions provider Pointer Telocation Systems Ltd. (Nasdaq:PNTR; TASE:PNTR) for $140 million in a cash and stock deal. I.D. Systems will pay $72 million cash and 11 million shares in PowerFleet, a new holding company, which will be traded on Nasdaq and the Tel Aviv Stock Exchange (TASE).
Based in Rosh Ha'ayin northeast of Tel Aviv, Pointer Telocation is a leading provider of innovative telematics and mobile IoT solutions to the automotive, insurance and logistics (cargo, assets and containers) industries. Pointer's 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. Pointer's technology is deployed in three million light and heavy commercial vehicles in 80 countries.
Pointer CEO David Mahlab said, "Pointer has built a successful and profitable company in the high-growth telematics industry. We have earned a reputation for technology rich products, expert technical services, advanced software solutions and innovative IoT mobile solutions, all under a brand that is valued by our customers and the industry for quality and reliability. The combination of I.D. Systems and Pointer will deliver high-value, technology leading, IoT products globally. By expanding our product offerings and services, we expect to extend our leadership position in the growing mobile IoT and connected vehicle market, increase our penetration in North America, as well as expand our share of the global multi-billion-dollar IoT telematics market. I am extremely proud of Pointer's track record of improving shareholder value and this combination marks yet another step in delivering on our commitment to that goal."
I.D. Systems CEO Chris Wolfe, and CFO Ned Mavrommatis will lead the merged company with Mahlab to serve as CEO International and as a member of the PowerFleet Board of Directors. Pointer CFO Yaniv Dorani will serve as Deputy CEO International.
Wolfe said, "The acquisition builds on a two-year strategic working relationship with David and the Pointer team, where we have been co-developing numerous award-winning products. Through our collaboration, it became increasingly evident that our business values and strategy are well aligned on the shared mission of improving our customers' operations through innovative design, engineering discipline, and building industrial-grade solutions. By unifying our businesses, we plan to create significant operational, technological and go-to-market synergies, which will enable faster time-to-market of revenue generating new products and features. Realizing these product development and delivery opportunities is enhanced by the fact that we both utilize the same tech stack in our development and hosting environments. Together, I.D. Systems and Pointer will join a select group of IoT companies with more than 500,000 subscribers, and have the added benefit of being vertically integrated, unlike others in the market."
Pointer is represented in US and Israel by Adv Shy Baranov of the ZAG-S&W law firm.
Published by Globes, Israel business news - en.globes.co.il - on March 14, 2019
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