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
WOODCLIFF LAKE, N.J.,
April 2, 2024 /PRNewswire/
-- 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.
ABOUT POWERFLEET
Powerfleet (Nasdaq: PWFL; JSE: PWR;
TASE: PWFL) is a global leader in the artificial intelligence of
things (AIoT) software-as-a-service (SaaS) mobile asset industry.
With more than 30 years of experience, Powerfleet unifies business
operations through the ingestion, harmonization, and integration of
data, irrespective of source, and delivers actionable insights to
help companies save lives, time, and money. Powerfleet's ethos
transcends our data ecosystem and commitment to innovation; our
people-centric approach empowers our customers to realize impactful
and sustained business improvement. The company is headquartered in
New Jersey, United States, with offices around the globe.
Explore more at www.powerfleet.com.
ABOUT MIX TELEMATICS
MiX Telematics is a leading global provider of fleet and mobile
asset management solutions delivered as SaaS to over one million
global subscribers spanning more than 120 countries. The company's
products and services provide enterprise fleets, small fleets, and
consumers with efficiency, safety, compliance, and security
solutions. MiX Telematics was founded in 1996 and has offices
in South Africa, the United Kingdom, the United
States, Uganda, Brazil, Mexico and Australasia
as well as a network of more than 130 fleet partners worldwide. For
more information, visit www.mixtelematics.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking
statements within the meaning of federal securities laws.
Powerfleet's actual results may differ from its expectations,
estimates and projections and consequently, you should not rely on
these forward-looking statements as predictions of future events.
Forward-looking statements may be identified by words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions.
These forward-looking statements include, without
limitation, Powerfleet's expectations with respect to its
beliefs, plans, goals, objectives, expectations, anticipations,
assumptions, estimates, intentions and future performance, as well
as anticipated financial impacts of the transaction with MiX
Telematics. Forward-looking statements involve significant known
and unknown risks, uncertainties and other factors, which may cause
their actual results, performance or achievements to be materially
different from the future results, performance or achievements
expressed or implied by such forward-looking statements. All
statements other than statements of historical fact are statements
that could be forward-looking statements. Most of these factors are
outside Powerfleet's control and are difficult to predict. The
risks and uncertainties referred to above include, but are not
limited to, risks related to: (i) future economic and business
conditions, including the conflict between Israel and Hamas; (ii) integration of our and
MiX Telematics' businesses and the ability to recognize the
anticipated synergies and benefits of the transaction with MiX
Telematics; (iii) the loss of any of our key customers or reduction
in the purchase of our products by any such customers; (iv) the
failure of the markets for our products to continue to develop; (v)
the negative effects of the transaction on the market price of our
securities; (vi) our inability to adequately protect our
intellectual property; (vii) our inability to manage growth; (viii)
the effects of competition from a wide variety of local, regional,
national and other providers of wireless solutions; and (ix) such
other factors as are set forth in the periodic reports filed by
Powerfleet with the Securities and Exchange Commission ("SEC"),
including but not limited to those described under the heading
"Risk Factors" in its annual reports on Form 10-K, quarterly
reports on Form 10-Q and any other filings made with the SEC from
time to time, which are available via the SEC's website
at http://www.sec.gov. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
to be incorrect, actual results may vary materially from those
indicated or anticipated by these forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements.
The forward-looking statements included in this press release
are made only as of the date of this press release, and except as
otherwise required by applicable securities law, Powerfleet assumes
no obligation, nor does Powerfleet intend to publicly update or
revise any forward-looking statements to reflect subsequent events
or circumstances.
Powerfleet Investor Contacts
Jody Burfening and Carolyn Capccio
LHA Investor Relations
AIOTIRTeam@lhai.com
Powerfleet Media Contact
Andrea Hayton
ahayton@powerfleet.com
+1 (610) 401-1999
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SOURCE Powerfleet