Lowenstein Sandler is representing Abry Partners, a private equity investment firm focused on media, communications, insurance, and business and information services, in its $50 million convertible preferred equity investment in the new global IoT telematics company expected to be formed by the acquisition of Pointer Telocation Ltd. by I.D. Systems, Inc.
I.D. Systems, a provider of enterprise asset management and industrial Internet of Things (IoT) technology, and Pointer, a provider of telematics and mobile IoT solutions, have entered into a definitive agreement where I.D. Systems will acquire all of the outstanding shares of Pointer in a cash and stock transaction valued at approximately $140 million. The combined business will be rebranded as PowerFleet, Inc. and is expected to be dual listed on Nasdaq and the Tel Aviv Stock Exchange.
The transactions will be funded through a combination of a $50 million convertible preferred equity investment by Abry Partners and a $30 million debt financing by Bank Hapoalim. The transactions have been unanimously approved by the boards of directors of both companies, are subject to customary closing conditions, including approval by the stockholders of I.D. Systems and Pointer, and are expected to close in the summer of 2019.
In connection with Abry Partners’ convertible preferred equity investment, I.D. Systems has agreed to appoint Managing Partner John Hunt and Principal Anders Bjork of Abry Partners to the PowerFleet Board of Directors, effective upon the closing of the investment.
Lowenstein Sandler and Meitar Liquornik Geva Lesham Tal will serve as legal advisors to Abry Partners’ registration, redemption, preemptive, board designation, and consent rights. Canaccord Genuity will act as the financial advisor, and Olshan Frome Wolosky LLP and Goldfarb Seligman & Co. will act as legal advisors to I.D. Systems. ROTH Capital Partners will act as financial advisor and ZAG-S&W LLP will act as U.S. and Israeli legal advisor to Pointer.