Pointer Telocation to Purchase Remainder of Shagrir Systems Ltd.; Highly
Accretive Acquisition Which Strongly Increases EPS
ROSH HAAYIN, Israel, December 23, 2013
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
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
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.
Zvi Fried, V.P. and Chief Financial Officer
Kenny Green/Ehud Helft, CCG Investor Relations
SOURCE Pointer Telocation Ltd
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