PowerFleet and MiX Telematics have officially agreed to merge, creating Software-as-a-Service (SaaS) providers for mobile asset Internet of Things (IoT).
This collaboration aims to establish a global organization that assists clients in addressing crucial business challenges such as safety and risk management, compliance, sustainability, and operational efficiency.
The merged entity is poised to enhance the ability of customers to save lives, time, and money.
Unlocking Strong Incremental Value Creation Opportunities
“By leveraging our proven SaaS strategy across the combined business, spearheaded by our Unity platform and data highway, we firmly believe we will be extremely well positioned to drive incremental market consolidation. Realizing transformative scale, this transaction with MiX will provide the go-forward company with 1.7 million subscribers, and the ability to sell additive and accelerated AI and data-powered software solutions to a truly global set of customers,” said Steve Towe, Powerfleet’s Chief Executive Officer, who will continue serving as CEO of the combined Powerfleet company. “This combination is expected to achieve a number of strategic objectives including unlocking strong incremental value creation opportunities; a refinanced balance sheet for the combined company that will provide more flexibility to execute our strategic growth initiatives; and the ability to retain and attract an expanded portfolio of shareholders. Combining with MiX, an extremely well-run and profitable organization, will establish the combined entity as a world-class SaaS company, giving us the speed and capability to achieve improved growth in high quality recurring revenues and expanded profitability much sooner.”
Stefan Joselowitz, Chief Executive Officer at MiX Telematics, intends to retire at the conclusion of this transaction, but plans to continue to be a shareholder of the new combined entity. Joselowitz added, “I am extremely proud of our heritage and the high-quality business MiX is today, and I am delighted to have finally found an ideal partner that shares our values and strategic goals to take the company to the next level. We strongly believe that Powerfleet’s Unity strategy and our combined scale perfectly positions us to revolutionize the mobile asset IoT SaaS industry and drive transformative growth. As a shareholder I am very excited about how this combination will accelerate the achievement of our shared strategic goals.”
Benefits of the Merge
Benefits expected from the transaction:
- Market Leadership: The combined company will create a mobile asset IoT SaaS organization with significant scale, serving all mobile asset types. The increased scale is expected to enable the combined entity to serve our customers and create an advantage to compete in an industry characterized by the need for a high pace of development and innovation more efficiently.
- Scale and Data Strategy: With a combined base of approximately 1.7 million subscribers following the transaction, the joint entity is expected to achieve significant scale and enhance our Unity platform strategy — including our AI-led data harmonization and integration capabilities.
- Research and Development Excellence: By integrating the Powerfleet and MiX engineering and technology teams, the combined organization is expected to accelerate the delivery of solutions with improved advantage.
After the completion of the transaction, Steve Towe will continue to serve as the CEO of Powerfleet, with David Wilson retaining the position of CFO. Stefan Joselowitz, the existing CEO of MiX, will be stepping into retirement.
A fresh board of directors for Powerfleet is set to be established, with Michael Brodsky taking on the role of Chairman. Steve Towe is slated to be a member of the board, and Ian Jacobs, the current Chairman of MiX Telematics, will also be joining the board.
MiX will nominate an additional board member, and subsequent appointments to the board will be determined through mutual agreement.