ROSH HAAYIN, Israel,
September 3, 2015 /PRNewswire/ --
Pointer Telocation Ltd.(Nasdaq CM: PNTR) - a leading
developer, manufacturer and operator of Mobile Resource Management
(MRM), announced today that it has entered into a definitive
agreement with Pointer Recuperación de México, S. de R.L. de C.V.
("Sellers") to acquire 26% of the issued share capital of Pointer
Recuperación de México, S.A. de C.V. ("Pointer Mexico"). Following
the completion of the transaction Pointer will hold 100% of the
issued share capital of Pointer Mexico.
In consideration for the 26% interest in Pointer Mexico, Pointer
is issuing to the Seller an aggregate of 81,081 ordinary
shares.
Commenting on the agreement, David
Mahlab, Pointer's CEO said: "We are happy to announce the
signing of the agreement to fully acquire Pointer Mexico and
turning it into a wholly owned subsidiary. This accretive
acquisition streamlines and simplifies our overall business
structure, and is in line with our strategic goal for international
growth. We established Pointer Mexico with local partners in 2004,
and we expect the acquisition will prove to be long-term accretive
to our financial results. This acquisition is evidence of our
confidence in the Latin American business. We look forward to
continuing with our international growth strategy and aim to make
additional acquisitions in the Latin American market, where we see
long-term growth potential," 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, Fleet Management and
Stolen Vehicle Recovery. 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.
Pointer Telocation's top management and the development center
are located in the Afek Industrial Area of Rosh Ha'ayin, Israel. For more information
visit http://www.pointer.com
About Pointer Mexico:
Pointer Mexico was established
in 2004 and has become a leading Telematics service provider
offering advanced solutions for fleet and asset management
applications. Pointer Mexico
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 Mexico aims to deliver improved fleet operations
efficiency, increased productivity, reduced maintenance costs and
remote control of valuable mobile assets to its customers.
Pointer Mexico's diverse
customer base ranges from small truck fleets of 51 vehicles to
cross country logistics, transportation and utility fleets of over
1000 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
Kenny Green/Ehud Helft, GK Investor Relations
Tel: +1-646-201-9246
E-mail: pointer@gkir.com
SOURCE Pointer Telocation Ltd