PowerFleet, Inc. has closed its previously announced acquisition of
Pointer Telocation Ltd. and rebranded the company formerly known as
I.D. Systems to PowerFleet, Inc. (NASDAQ: PWFL; TASE: PWFL).
PowerFleet’s common stock commenced trading on the Nasdaq Global
Market this morning.
The acquisition and corporate branding positions
PowerFleet as a global leader in providing enterprise-class
wireless Internet of Things (IoT) and Machine to Machine (M2M)
technology that powers wireless solutions for the
multi-trillion-dollar logistics, industrial vehicle and fleet
management markets. To date, PowerFleet’s solutions have been
selected by more than 1,500 customers and operate on more than
500,000 mobile subscriber units globally.
Due to the company’s full suite of purpose-built telematics
platforms, sensors, Software-as-a-Service (SaaS) and analytics
offerings, PowerFleet maintains a reputation as a leading supply
chain and fleet management efficiency solutions provider. The
company expects that its rebranding, enhanced suite of solutions,
and global scale will enable it to strategically leverage
technologies and solutions from one market to the next with the
goal of increasing profitability and cash flow generation.
“With growing operational and financial pressures, fleet
managers are playing an increasingly critical role in maintaining
profitability and driving accountability,” said Matt Arcaro,
Research Manager, Next-Generation Automotive Research at IDC. “To
meet this challenge, they are seeking out platforms with flexible,
extendable capabilities that can evolve with their IoT technology
maturity, including seamlessly providing insights across their
drivers, vehicles and even
cargo.” By
providing actionable reporting and deep insights into an
organization’s mobile assets and mobility workers, PowerFleet’s
core technology stack will provide enhanced decision support.
Additionally, the company will continue to focus on improving
efficiencies and generating greater returns from high-value
enterprise assets, which include industrial trucks, tractors,
trailers, containers, cargo, automobiles, service vehicles and
delivery truck fleets. Ultimately, the company’s purpose-built
solutions are designed to help customers deliver product more
effectively, improve the quality of their service, and operate more
safely by identifying and addressing issues at their source.
“While the company’s name has changed, our people and purpose
have not,” said Chris Wolfe, PowerFleet CEO. “This transformation
is directly in line with our core mission, which is to provide our
customers with powerful products and services that help them meet
their customers’ needs and grow their businesses. PowerFleet will
continue to be the one-stop-shop for everything organizations need
to proactively manage the complexities that arise from a mobile
Internet of Things world.
“This is a logical branding change for the company, as many of
the products we sell today have already been sold under the
PowerFleet name in North America and the EU. Our newly empowered
delivery team is capable of leveraging key technologies, such as
image processing, machine learning, next-generation wireless
technology, and a unique super-cap power supply, to connect the
disparate pieces of the supply chain and illuminate inefficiencies
and bottlenecks within business systems and operations.”
The company’s new corporate umbrella includes three global
brands: PowerFleet, Pointer Telocation and Cellocator. PowerFleet
will be both the corporate entity name, as well as the primary
brand for North America. Pointer and Cellocator will remain the
primary brands sold internationally. Globally, PowerFleet will
target four vertical markets:
- Logistics
- Industrial
- Vehicles
- Assets
|
Powers mobile tractors, trucks, trailers, containers and cargo
Powers industrial vehicles (forklifts) and other warehouse safety
itemsPowers rental, private automotive and service fleets
Powers all mobile assets from generators to construction
equipment |
Shares of I.D. Systems common stock ceased trading on the Nasdaq
Global Market and Pointer ordinary shares ceased trading on the
Nasdaq Capital Market on October 2, 2019. Pointer ordinary shares
also ceased trading on the TASE earlier today. Shares of PowerFleet
common stock commenced trading on the Nasdaq Global Market this
morning and are expected to commence trading on the Tel Aviv Stock
Exchange on October 6, 2019, in each case under the ticker symbol
“PWFL”.
The acquisition was effected through a newly-created holding
company structure, whereby I.D. Systems and Pointer each became
wholly-owned subsidiaries of PowerFleet. At the closing of the
acquisition, each outstanding share of I.D. Systems common stock
(other than certain excluded shares) was converted automatically
into the right to receive one share of PowerFleet common stock and
each outstanding ordinary share of Pointer (other than certain
excluded shares) was cancelled in exchange for $8.50 in cash,
without interest, and 1.272 shares of PowerFleet common stock. The
acquisition was funded through a combination of a $50 million
convertible preferred equity and a $5 million convertible note
investment by Abry Partners and a $30 million debt financing by
Bank Hapoalim B.M. The $5 million convertible note will convert
into convertible preferred equity of PowerFleet upon receipt of
stockholder approval in accordance with Nasdaq rules.
Canaccord Genuity LLC acted as financial advisor to I.D. Systems
and Olshan Frome Wolosky LLP and Goldfarb Seligman & Co. acted
as legal advisors to I.D. Systems. ROTH Capital Partners, LLC acted
as financial advisor to Pointer and ZAG-S&W LLP acted as U.S.
and Israeli legal advisor to Pointer. Lowenstein Sandler LLP and
Meitar Liquornik Geva Lesham Tal acted as legal advisors to Abry
Partners.
For more information, please visit www.powerfleet.com.
About PowerFleetPowerFleet® Inc. (NASDAQ: PWFL;
TASE: PWFL) is a global leader and provider of subscription-based
wireless IoT and M2M solutions for securing, controlling, tracking,
and managing high-value enterprise assets such as industrial
trucks, tractor trailers, containers, cargo, and vehicles and truck
fleets. The company is headquartered in Woodcliff Lake, New Jersey,
with offices located around the globe. PowerFleet’s patented
technologies address the needs of organizations to monitor and
analyze their assets to increase efficiency and productivity,
reduce costs, and improve profitability. Our offerings are sold
under the global brands PowerFleet, Pointer, and Cellocator.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of federal securities laws. Forward-looking statements
include statements with respect to PowerFleet’s beliefs, plans,
goals, objectives, expectations, anticipations, assumptions,
estimates, intentions, and future performance, and involve known
and unknown risks, uncertainties and other factors, which may be
beyond PowerFleet’s control, and which may cause its actual
results, performance or achievements to be materially different
from future results, performance or achievements expressed or
implied by such forward-looking statements. All statements other
than statements of historical fact are statements that could be
forward-looking statements. For example, forward-looking statements
include statements regarding: prospects for additional customers;
potential contract values; market forecasts; projections of
earnings, revenues, synergies, accretion or other financial
information; emerging new products; and plans, strategies and
objectives of management for future operations, including growing
revenue, controlling operating costs, increasing production
volumes, and expanding business with core customers. The risks and
uncertainties referred to above include, but are not limited to,
future economic and business conditions, the ability to recognize
the anticipated benefits of the acquisition, which may be affected
by, among other things, the loss of key customers or reduction in
the purchase of products by any such customers, the failure of the
market for PowerFleet’s products to continue to develop, the
possibility that PowerFleet may not be able to integrate
successfully the business, operations and employees of I.D. Systems
and Pointer, the inability to protect PowerFleet’s intellectual
property, the inability to manage growth, the effects of
competition from a variety of local, regional, national and other
providers of wireless solutions, and other risks detailed from time
to time in PowerFleet’s, I.D. Systems’ and Pointer’s filings with
the Securities and Exchange Commission, including I.D. Systems’
annual report on Form 10-K for the year ended December 31, 2018,
Pointer’s annual report on Form 20-F for the year ended December
31, 2018 and PowerFleet’s registration statement on Form S-4 filed
with the Securities and Exchange Commission on May 24, 2019, as
amended on July 1, 2019 and July 23, 2019, could cause actual
results to differ materially from those expressed in any
forward-looking statements made by, or on behalf of, PowerFleet.
Unless otherwise required by applicable law, PowerFleet assumes no
obligation to update the information contained in this press
release, and expressly disclaims any obligation to do so, whether a
result of new information, future events, or otherwise.
Company ContactNed Mavrommatis,
CFO
ned@powerfleet.com
(201)
996-9000
Media ContactSara Shafferpowerfleet@n6a.com
Investor ContactMatt Glover
Gateway Investor Relations
PWFL@gatewayir.com
(949) 574-3860
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