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Micronet Enertec Announces the Closing of the Acquisition of the US-Based Mobile Resource Management (MRM)/Fleet Management (FM) Division of Beijer
SALT LAKE CITY, June 5, 2014 /PRNewswire/ -- Micronet Enertec Technologies, Inc. (NASDAQCM:MICT) announced today that its subsidiary Micronet Ltd completed the previously announced acquisition of certain assets and liabilities of the MRM/FM business division of U.S. based Beijer Electronics Inc (Seller), a fully owned subsidiary of Beijer Electronics, a Swedish publicly traded corporation headquartered in Stockholm.
Micronet purchased all related intellectual property, product rights, production files, customer base, sales and marketing network, sales leads and initiatives, technical support operation, inventory, and all related agreements. As part of the acquisition, key MRM/FM division employees joined Micronet ensuring an efficient continuous operation and contributing for the future growth of the company.
Beijer's MRM/FM rugged tablets complement andare sometimes used to compete with the Micronet product line, offering variety of products with different and additional features.The combined company will offer a comprehensive product line, targeting different market segments including the largest and fastest growing Local Fleets as well as Long Haul, Heavy Equipment, Construction and Field Workforce verticals.
Global marketing and sales efforts will be consolidated immediately to take advantage of the superior product offerings and the growing market demand.
Pursuant to the terms of the Asset Purchase Agreement, Micronet paid Beijer, at the closing of the transaction, $6.5 million of which the amount of $4.85 million was financed through a bank loan. The balance of the purchase price was funded by Micronet through its own independent resources.
In addition, in accordance with the terms of the Asset Purchase Agreement, Seller provided Micronet with an estimated inventory value report pursuant to which the value of inventory which is subject to post closing adjustment is set at $800,000.
Micronet Enertec CEO David Lucatz commented, "This acquisition is a major step forward for us. It provides a solid marketing and operating base in the U.S., our largest market. Overnight, it dramatically expands our U.S. client base. We expect it to be accretive to earnings immediately. With the combined product line we can serve the diversified needs of this multi-billion dollar market which our joint sales force will aggressively approach. Furthermore, this step is only the beginning; our marketing and R&D teams continuously work on innovating and adding features that will differentiate and enhance our product offering in the market. We are already encouraged by the promising feedbacks and interest that we are getting from the market."
About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. (MICT), operates through two companies, Enertec Systems 2001 Ltd ("Enertec"), its wholly-owned subsidiary, and Micronet Ltd (Micronet), in which it has a controlling interest. Micronet Ltd and its wholly owned subsidiary Micronet Inc, operate in the growing commercial Mobile Resource Management (MRM) market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments. Enertec operates in the Defense and Aerospace markets and designs, develops, manufactures and supplies various customized military computer-based systems for missile defense systems, command and control and others. The Company's products, solutions and services are designed to perform in severe environments and battlefield conditions. For more information please visit: www.micronet-enertec.com, the content of which is not incorporated by reference into this press release.
This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding the acquisition discussed above and positioning of MICT after the transaction, the pace and success of the integration of the acquired division, gaining market share, broadening and diversifying MICT's customer base, expansion of MICT's operations and setting a base in the US, future growth, future product offerings and its ability to serve a broad range of verticals in the market in which it operates. Such forward-looking statements and their implications involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in the company's annual report on Form 10-K for the year ended December 31, 2013 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Micronet Enertec Technologies, Inc.
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