A Scaled Day-One Business with Total Revenue of $284 Million, Including $215 Million of Recurring High-Margin SaaS Revenues and Combined Service Gross Margins of 65%
Combined Customer Base Begins with More than 1.8m Subscribers
In Addition to a Significant Growth Opportunity, Combination Expected to Unlock a Compelling $25m+ EBITDA Expansion Within First Two Years
Expected to Deliver Significant Cross-Sell and Upsell Opportunities for Combined Solution Portfolio into Joint Base of 7,500 Enterprise Customers
Virtual Investor Fireside Chat Scheduled for 9:30 AM ET on Tuesday, April 30, 2024
Powerfleet, Inc. (Nasdaq: PWFL) and MiX Telematics Limited have successfully closed their previously announced business combination, forming one of the world’s largest mobile asset Artificial Intelligence of Things (AIoT) Software-as-a-Service (SaaS) providers. This powerful combination creates a scaled, global entity of choice focused on unifying business operations by simplifying how customers manage, analyze, and utilize data to drive improved business performance.
“This transformative combination positions Powerfleet as a leading global AIoT SaaS company, setting the stage for accelerated growth in recurring revenues, increased profitability, and expanded avenues for creating shareholder value,” said Steve Towe, Powerfleet’s Chief Executive Officer. “We’re swiftly executing a proven business integration strategy known for delivering concrete outcomes, underpinned firstly by a robust $25m+ EBITDA expansion program in concert with medium-term high growth. This approach is designed to accelerate the integration process, allowing us to promptly focus on driving increased shareholder value and enhancing our customers’ experience.”
A new board of directors of Powerfleet has now been appointed. The new board consists of Michael Brodsky, Chairman, Steve Towe, CEO, and Ian Jacobs, the previous MiX Chairman. Powerfleet is also pleased to announce Mike McConnell as a new board member. Mike has a strong history as a corporate director, focused on enhancing shareholder value.
“On behalf of the entire board, we are delighted by the successful completion of the business combination between Powerfleet and MiX,” shares Michael Brodsky, Chairman of the Powerfleet board. “We are highly confident the combined entity will emerge as a strongly unified, differentiated, and efficient company.”
Steve Towe added, “Amidst a fragmented market where consolidation and scale continue to be a strong driver, Powerfleet possesses a clear vision and mission, anchored by our compelling Unity platform. Our device-agnostic data ingestion engine and third-party integration capabilities, unique to Unity, deliver unparalleled value for our customers. We unify their operations, providing a single source of truth for their people, their assets, and business processes – enabling impactful business change and enhanced performance.”
The combined geographical footprint, deep vertical expertise, and expanded software solution sets coupled with the extensive direct and indirect sales channel capabilities should enable Powerfleet to maximize significant cross-sell and upsell opportunities within the impressive joint customer base, promoting recurring SaaS revenue. This positions Powerfleet to move towards Rule of 40 performance within two years of closing this transaction.
Powerfleet plans to hold a Virtual Investor Fireside Chat on Tuesday, April 30, 2024, at 9:30am ET. Details for this event will follow.
TRANSACTION ADVISORS
William Blair & Company, L.L.C. acted as financial advisor, and Olshan Frome Wolosky LLP and Webber Wentzel acted as legal advisors to Powerfleet. Raymond James and Java Capital acted as financial advisors to MiX Telematics, and DLA Piper LLP (US) and Java Capital acted as legal advisors to MiX Telematics. Gateway Group acted as investor relations advisor to Powerfleet and MiX Telematics.
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