Shares of PowerFleet saw a significant surge of 32% to $2.60 following the announcement of their merger with Mix Telematics. Despite a 3.4% decline in shares throughout the year, this marks the largest percentage increase for PowerFleet since 2001.
After the completion of the all-stock deal, Mix shareholders will possess approximately 65% of the company while PowerFleet shareholders will own the remaining shares. Additionally, as part of the agreement, the combined company will secure $75 million in debt.
PowerFleet’s current Chief Executive, Steve Towe, will retain his position as CEO of the merged entity, and Chief Financial Officer David Wilson will continue in his role. On the other hand, Mix CEO Stefan Joselowitz will retire.
A new board will be formed for the combined company, with PowerFleet Chairman Michael Brodsky taking on the role of chairman. Steve Towe and Mix Chairman Ian Jacobs will also be part of the board.
The merger of PowerFleet and Mix Telematics will result in one of the largest providers of mobile asset Internet of Things (IoT) and software as a service (SaaS).