PowerFleet, Inc. and MiX Telematics Limited, announced that they have entered into a definitive agreement to form a of the world’s largest providers of Internet of Things (IoT) Software-as-a-Service (SaaS) for mobile assets. This powerful combination will form a global entity of scale focused on helping customers save lives and save time and money by solving critical business challenges such as security and risk management, compliance , sustainability and operational efficiency.
SUMMARY OF COMPANIES COMBINATION AND KEY DEVELOPMENTS
- Combined company with total revenue of $279 million, including $210 million in recurring high-margin SaaS revenue and $39 million of adjusted EBITDA for the trailing twelve month (TTM) period ending June 30, 2023 (excluding selected non-cash and non-cash items). recurrent).
- The transaction is expected to close in the first quarter of 2024.
- Upon completion, the combined companies will be branded Powerfleet, with their primary listing on Nasdaq.
MANAGEMENT COMMENTARY
“By leveraging our proven SaaS strategy across the combined enterprise, powered by our Unity platform and data highway, we firmly believe we will be extremely well positioned to drive incremental market consolidation. Providing transformative scale, this transaction with MiX will provide the future company with 1.7 million subscribers and the ability to sell AI-powered, AI-accelerated and data-driven software solutions to a truly global set of customers,” said Steve Towe, CEO of Powerfleet, who will continue to serve as CEO of the combined Powerfleet company. “This combination is expected to achieve a number of strategic objectives, including the creation of significant value creation opportunities; a refinanced balance sheet for the combined company, which will provide greater flexibility to execute our strategic growth initiatives; and the ability to retain and attract a larger portfolio of shareholders. The combination with MiX, an extremely well-run and profitable company, will establish the combined entity as a world-class SaaS company, giving us the speed and ability to achieve enhanced revenue growth high-quality recurring revenues and expanded profitability, much faster.”
Stefan Joselowitz, CEO of MiX Telematics, intends to retire upon completion of this transaction, but plans to remain a shareholder in the new combined entity. Joselowitz commented: “I am extremely proud of our heritage and the high-quality company that MiX is today and am very pleased to have finally found an ideal partner who shares our values and strategic objectives to take the company to a higher level. We believe I firmly believe that Powerfleet’s Unity strategy and our combined scale position us perfectly to disrupt the mobile IoT SaaS industry and drive transformative growth. As a shareholder, I am very excited about how this combination will accelerate the achievement of our strategic objectives shared.”
STRATEGIC BENEFITS
Interesting benefits expected from this transaction:
- Enhanced Shareholder Value : The transaction will immediately increase value for our current and potential shareholders, with combined total revenue of $279 million and $39 million in adjusted EBITDA. The stronger balance sheet, combined with the growth-focused capital structure, is expected to propel the combined entity toward ambitious and achievable growth goals, including “Rule of 40” performance.
- Market Leadership : The combined company will create a world-class mobile IoT SaaS organization with significant scale, serving all types of mobile assets. The increase in scale is expected to allow the combined entities to more efficiently serve our customers and create advantages to compete in a sector characterized by the need for a high pace of development and innovation.
- Scale and Data Strategy : With a combined subscriber base of approximately 1.7 million post-transaction, the combined entity is expected to achieve significant scale as well as enhance our strategy with the Unity platform, including our harmonization capabilities and AI-driven data integration.
- Excellence in Research and Development : By integrating the world-leading engineering and technology teams of Powerfleet and MiX, the combined company is expected to accelerate the delivery of best-in-class solutions with greater competitive advantage.
- Accelerated time-to-market and greater reach : Our combined geographic presence, deep vertical expertise and expanded suites of software solutions, along with our extensive direct and indirect sales channel capabilities, will enable us to maximize significant cross-sell and upsell opportunities within our impressive combined customer base.
- World-Class Talent : With more than 1,800 experienced and talented employees worldwide, the combined entities will focus on attracting and retaining the best talent to deliver maximum value for our clients.
SOURCE : PRNewswire