The US I.D. Systems is acquiring the Israeli company Pointer Telocation for $140 million. The payment comprised of $72 million in cash and $11 million shares of PowerFleet, Inc., a newly-created holding company.
According to Pointer’s announcement, the deal is expected to close in the summer of 2019. The new company PowerFleet will be traded on the Tel Aviv Stock Exchange and NASDAQ.
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Under CEO David Mahalav management Pointer provides mobile resource management (MRM) solutions, such as location-based services, fleet management, and asset tracking. It is also a provider of telematics, mobile IoT solutions to the automotive, insurance and logistics industries.
The products Pointer provides include two-way car communication and connection to the vehicle’s computer. The products are all connected to GPS and communications on cellular lines as well as to the vehicle array, around which they create a whole world with applications around.
In May 2018, private equity firm DBSI sold close to one-third of Pointer’s shares, for $10 million. The transaction was based on a price of $14 per Pointer share, followed by DBSI in Pointer from 27% to 18.5%, with a current holding value of $20.5 million.
Under the deal, approximately 8.5% of Pointer’s share capital “changed hands”, according to market estimates, the buyers of shares from DBSI are Altshuler Shaham and two other entities, Israeli Globes reported.
I.D. Systems was founded in 1993 by two engineers who graduated from Stanford University and now has customers such as Ford, AVIS, and the US Post Office. Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Florida, Germany, and the United Kingdom.
