Fleet Management Company I.D. Systems to Acquire Vehicle Location Company Pointer
I.D. Systems will pay $72 million in cash for the Israeli company. Pointer will also get 11 million stocks in Power Fleet, a new company to be formed as a result of the merger
12:1414.03.19
Woodcliff Lake, New Jersey-based car fleet management company I.D. Systems Inc. has entered a definitive agreement to acquire Israel-based vehicle location and roadside service company Pointer Telocation Ltd. in a $140 million cash and stock deal, the companies announced Wednesday.
Pointer president and CEO David Mahlab. Photo: PR
The deal was financed by a $50 million equity investment in Power Fleet by Boston-based Abry Partners and $40 million in debt financing from Israel’s Bank Hapoalim, according to the companies’ statement.
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Founded in 1991 and based in Rosh Ha’ayin, a town in central Israel, Pointer Telocation develops GPS-based location services for vehicles that are not dependant on cellular communications, including vehicles operating underground.
Pointer president and CEO David Mahlab. Photo: PR
According to Wednesday’s statement, I.D. Systems will pay $72 million in cash. Pointer will also get 11 million stocks in Power Fleet Inc., a new company to be formed as a result of the merger. Following the deal’s completion scheduled for the summer of 2019, Power Fleet intends to dually list on Nasdaq and on the Tel Aviv Stock Exchange.
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I.D. Systems and Pointer Telocation are currently listed on Nasdaq, the latter also trading in Tel Aviv.
