Boston, MA 09/10/2014 (wallstreetpr) – Pointer Telocation Ltd (NASDAQ:PNTR) announced the acquisition of Global Telematics S.A. Proprietary Limited, which is a South African fleet management firm. The new acquisition of Global Telematics will allow it to expand its services and operations globally.
Significance of the acquisition
Global Telematics has got a solid customer base including the leaders in sectors like construction and passenger transportation and transport and logistics. It has got experience and expertise in developing Telematics solutions useful for the businesses in managing the fleets and deliveries operations. The acquisition will be accretive to Pointer Telocation’s earnings in year 2015.
Global Telematics view
Paul Roberts, MD of Global Telematics considers it as a great opportunity that will allow Global to leverage its business operations. It will allow Global to be a part of the company in the flourishing MRM business. The association of two companies and the introduction of new advanced technologies will be fruitful in coming time. It is positive for Global Telematics allowing it for business expansion into additional territories in Africa. Overall, the acquisition will enhance the synergies between the two firms and will improve the position of Global Telematics in industry.
Management view
David Mahlab, President and the CEO of Pointer Telocation Ltd (NASDAQ:PNTR) said that the new acquisition is the successful demonstration of Pointer’s strategy of business expansions into new markets. The acquisition of Global Telematics will encourage the operations in South Africa market. It will further open up the whole new market of African content.
Global Telematics is the first step towards the global expansion. South African market offers significant opportunities to Pointer Telocation Ltd (NASDAQ:PNTR) in the field of managing and tracking the vehicles and assets. The acquisition is a significant step towards leveraging the existing infrastructure and services of the company. It will also have an impact on the technology solutions offered by Pointer in hardware and software.
