Pointer Telocation Ltd. announced its plans to acquire Cellocator Ltd., a private Israeli company focused on location-based services and technology for cellphones. Pointer, which provides roadside assistance, fleet management and stolen vehicle retrieval services in Israel, Argentina and Mexico, said it will pay Cellocator and its shareholders approximately $18.5 million and expects the transaction to close in June once a definitive agreement is reached.
The companies have only agreed to the deal in a non-binding Memorandum of Understanding.
“This accretive acquisition is in line with our strategic goal for international growth and for penetrating to European markets. Cellocator complements our business by providing supreme quality technology and high class customer relationships, mainly in Europe,” Pointer CEO Danny Stern said.
Pointer said Cellocator’s forecasts indicate the company should generate $15 million this year.
Pointer to acquire LBS firm Cellocator for $18.5M
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