ROSH HAAYIN, Israel,
September 17, 2013 /PRNewswire/
--
Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading
developer, manufacturer and operator of Mobile Resource Management
(MRM) and roadside assistance services for the automotive industry,
announced today that it has entered into a definitive agreement
with Bracco do Brasil Empreendimentos e Participações Ltda.
("Bracco") to acquire 51.2% of the issued share capital of Pointer
do Brasil Comercial S.A. ("Pointer Brazil"). Following the
completion of the transaction Pointer will hold 100% of the issued
share capital of Pointer Brazil.
The closing of the transaction is expected to take place in
October 2013.
In consideration for the shares Pointer will pay to Bracco
approximately US$ 4.3 million in
cash, for which it is to receive financing from banks, and shall
repay loans to Bracco and a local bank, over a period of eighteen
months, in an aggregate amount of approximately US$ 1.2 million.
Commenting on the agreement, David
Mahlab, Pointer's CEO said: "We are happy to announce the
signing of the agreement to acquire 51.2% of Pointer Brazil and
turning it into a wholly owned subsidiary. This accretive
acquisition is in line with our strategic goal for international
growth. We established Pointer Brazil with local partners in 2009
and we expect the acquisition will increase Pointer's revenues as
well as improve our results. This acquisition is a proof of
Pointer's trust in our Latin
America business" concluded Mr. Mahlab.
About Pointer
Telocation:
Pointer Telocation is a leading provider of technology and
services to the automotive and insurance industries, offering a set
of services including Road Side Assistance, Stolen Vehicle Recovery
and Fleet Management. Pointer has a growing list of customers and
products installed in more than 45 countries. Cellocator, a Pointer
Products Division, is a leading AVL (Automatic Vehicle Location)
solutions provider for stolen vehicle retrieval, fleet management,
car & driver safety, public safety, vehicle security and more.
The Company's top management and the development center are located
in the Afek Industrial Area of Rosh
Ha'ayin, Israel.
For more information: http://www.pointer.com
About Pointer
Brazil:
Pointer Brazil was established
in 2009 and has become a leading Telematics service provider
offering advanced solutions for fleet and asset management
applications. Pointer Brazil
provides end to end services for a wide range of applications
including fleet performance monitoring, Track & Trace, stolen
vehicle recovery, driver safety & ECO driving, mobile assets
security & inventory management etc. Through these
services, Pointer Brazil aims to deliver improved fleet operations
efficiency, increased productivity, reduced maintenance costs and
remote control of valuable mobile assets to its customers.
Pointer Brazil's diverse
customer base ranges from small truck fleets of 5-10 vehicles to
cross country logistics, transportation and utility fleets of over
2000 vehicles.
Forward Looking
Statements
This press release contains historical information and
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995 with respect to the
business, financial condition and results of operations of the
Company. The words "believe," "expect," "anticipate," "intend,"
"seems," "plan," "aim," "should" and similar expressions are
intended to identify forward-looking statements. Such statements
reflect the current views, assumptions and expectations of the
Company with respect to the proposed acquisition and other future
events and are subject to risks and uncertainties. Many factors
could cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements, including, among others, changes
in the markets in which the Company operates and in general
economic and business conditions, loss or gain of key customers and
unpredictable sales cycles, competitive pressures, market
acceptance of new products, inability to meet efficiency and cost
reduction objectives, changes in business strategy and various
other factors, both referenced and not referenced in this press
release. Various risks and uncertainties may affect the Company and
its results of operations, as described in reports filed by the
Company with the Securities and Exchange Commission from time to
time. The Company does not assume any obligation to update these
forward-looking statements.
Contact:
Zvi Fried, V.P. and Chief Financial
Officer
Tel.: +972-3-572-3111
E-mail: zvif@pointer.com
Chen Livne, Gelbart-Kahana Investor
Relations
Tel: +972-3-607-4717, +972-54-302-2983
E-mail: chen@gk-biz.com
SOURCE Pointer Telocation Ltd