ROSH HAAYIN, Israel,
December 23, 2013 /PRNewswire/ --
Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading
developer, manufacturer and operator of Mobile Resource Management
(MRM), announced today that it has reached an agreement with
certain shareholders of Shagrir Systems Ltd. ("Shagrir"), to
acquire a 41.8% interest in Shagrir. Pointer currently owns 54.5%
of the issued share capital of Shagrir and the acquisition will
increase Pointer's shareholding in Shagrir to 96.3%. The remaining
3.7% of the shares of Shagrir are held by present and former
managers of Shagrir and the Company intends to purchase such
additional shares under similar terms.
In consideration for the 41.8% interest in Shagrir the Company
shall: (i) pay a cash consideration of NIS
29 million (approximately $8.3
million); and (ii) issue 914,000 Ordinary Shares of Pointer,
representing 14.1% of the issued share capital of Pointer following
the issuance of such shares.
Based on September 30, 2013
financial statements, on a pro-forma basis, the transaction would
have improved basic EPS by more than 10% to $0.51 from $0.46.
A definitive agreement is expected to be entered into by
December 31, 2013 with the closing of
the transaction anticipated to take place no later than
March 31, 2014, subject to receipt of
all required regulatory approvals and obtaining financing from a
banking institution.
Shagrir provides Mobile Resource Management (MRM) and roadside
assistance services for the automotive industry including towing
services and mobile automobile repair services (primarily in
Israel), and also offers car
sharing services via Car2Go in urban areas throughout Israel.
David Mahlab, President and CEO
of Pointer said: "Shagrir is a leading and profitable provider of
Mobile Resource Management services in Israel, supplying Stolen Vehicle Recovery,
Roadside Assistance and Fleet Management. We are delighted with
this opportunity to further consolidate our interest in Shagrir.
The deal will strengthen our ability to increase the synergies
between our global entities and we expect it to be accretive to our
shareholders. This deal follows soon after our previous deal in
which we acquired our partner's share in our Brazilian subsidiary.
Our full consolidation of Shagrir is a further milestone in our
long term strategy and in line with our expansion goals. It puts us
further along the road of becoming a global service provider in the
growing Mobile Recourse Management market".
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 50 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
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
Kenny Green/Ehud Helft, CCG Investor Relations
Tel: +1-646-201-9246
E-mail: pointer@ccgisrael.com
SOURCE Pointer Telocation Ltd