Powerfleet Closes Strategic Acquisition of Fleet Complete

Rhea-AI Summary

Powerfleet, Inc. (Nasdaq: PWFL) has successfully closed the acquisition of Fleet Complete, a leading connected vehicle technology and fleet management company. This strategic move is expected to create a $400m+ revenue company, including $300m+ of recurring SaaS revenue and $85m EBITDA. The combined entity will have 2.6 million total subscribers, positioning Powerfleet as a global leader in the AIoT market.

CEO Steve Towe highlighted that this transformative and highly accretive transaction will immediately scale Powerfleet's presence in North America and Europe. It also unlocks significant growth opportunities through Fleet Complete's indirect channel partnerships, particularly in the U.S. and Canada. The acquisition enhances Unity's data capabilities, adds 600,000 new subscribers, expands cross-sell opportunities, and strengthens Powerfleet's position in the AI-powered video market with Fleet Complete's FC Vision solution.

Positive

• Acquisition expected to create a $400m+ revenue company
• Over $300m of recurring SaaS revenue projected
• $85m EBITDA forecasted
• Combined total of 2.6 million subscribers
• Expansion of presence in North America and Europe
• Addition of 600,000 new subscribers
• Enhanced data ingestion and integration capabilities
• Strengthened position in AI-powered video market

Negative

• None.

Insights

Financial Analyst

This acquisition marks a significant milestone for Powerfleet, propelling it into a leadership position in the AIoT market. The combined entity's projected $400 million in revenue, with over $300 million in recurring SaaS revenue, demonstrates a robust and predictable business model. The $85 million EBITDA figure suggests strong profitability potential.

The addition of 2.6 million subscribers provides a substantial user base for cross-selling opportunities and economies of scale. The expansion into North America and Europe through Fleet Complete's established channels could accelerate Powerfleet's market penetration and revenue growth.

Investors should note the potential for synergies in data integration and AI-powered video solutions, which could drive innovation and competitive advantage. However, it's important to monitor the integration process and any potential challenges in merging operations and cultures.

Tech Expert

The acquisition of Fleet Complete significantly enhances Powerfleet's technological capabilities in the AIoT space. The integration of Fleet Complete's FC Vision solution into Powerfleet's portfolio strengthens its position in the AI-powered video market, a rapidly growing segment with applications in safety, security and operational efficiency.

The expanded data ingestion and integration capabilities from Fleet Complete's 600,000 new subscribers will likely improve the accuracy and depth of Powerfleet's AI and machine learning models. This could lead to more sophisticated predictive analytics and IoT solutions for fleet management.

The combined entity's increased scale in connected vehicle technology positions it well to capitalize on trends such as autonomous vehicles, smart cities and advanced telematics. However, the challenge lies in seamlessly integrating these technologies and leveraging the combined data assets effectively.

Acquisition Expected to Create a $400m+ Revenue Company, Including $300m+ of Recurring SaaS Revenue, $85m EBITDA, and Significant Expansion Opportunities

WOODCLIFF LAKE, N.J., Oct. 1, 2024 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT) has successfully closed the previously announced acquisition of Fleet Complete, a prominent player in connected vehicle technology and fleet management.

With 2.6 million total combined subscribers and forecasted combined revenue of over $400 million, including more than $300 million of recurring SaaS revenue, this transformative acquisition is expected to solidify Powerfleet's position as a true global leader in the rapidly expanding AIoT market.

"We are thrilled to have completed this transformative and highly accretive transaction. This acquisition immediately scales our presence in both North America and Europe while unlocking substantial top-line growth opportunities through Fleet Complete's established indirect channel partnerships, particularly in the U.S. and Canada. Moreover, the acquisition enhances Unity's data ingestion and integration capabilities, adding 600,000 new subscribers while expanding cross-sell opportunities and strengthens our position in the fast-growing AI-powered video market with Fleet Complete's FC Vision solution," said Steve Towe, CEO of Powerfleet. "We are excited to welcome Fleet Complete to the Powerfleet family and are confident in our ability to deliver enhanced shareholder value moving forward."

ABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR) 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.

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 acquisition of Fleet Complete. 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) the ability to realize the anticipated benefits of the acquisition of Fleet Complete; (ii) the ability to successfully integrate the businesses; (iii) disruption from the acquisition of Fleet Complete making it more difficult to maintain business and operational relationships; (iv) the negative effects of the consummation of the acquisition of Fleet Complete on the market price of Powerfleet's securities; (v) significant transaction costs and unknown liabilities; (vi) litigation or regulatory actions related to the acquisition of Fleet Complete; and (vii) 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
Carolyn Capaccio and Jody Burfening
LHA Investor Relations
AIOTIRTeam@lhai.com

Powerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 7921 242 892

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SOURCE Powerfleet

FAQ

What company did Powerfleet (PWFL) acquire?

Powerfleet (PWFL) acquired Fleet Complete, a prominent player in connected vehicle technology and fleet management.

What is the expected revenue of the combined Powerfleet (PWFL) and Fleet Complete company?

The combined company is expected to generate over $400 million in revenue, including more than $300 million of recurring SaaS revenue.

How many subscribers does the combined Powerfleet (PWFL) and Fleet Complete entity have?

The combined entity has a total of 2.6 million subscribers.

What is the projected EBITDA for the combined Powerfleet (PWFL) and Fleet Complete company?

The projected EBITDA for the combined company is $85 million.

How will the Fleet Complete acquisition impact Powerfleet's (PWFL) market presence?

The acquisition is expected to immediately scale Powerfleet's presence in both North America and Europe, while also unlocking substantial growth opportunities through Fleet Complete's established indirect channel partnerships.