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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

Tomer Hadar 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.

 

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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 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.

 

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.

 

I.D. Systems and Pointer Telocation are currently listed on Nasdaq, the latter also trading in Tel Aviv.
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