Pointer Telocation Ltd. (NASDAQ: PNTR) said it has reached an agreement with certain shareholders of Shagrir Systems Ltd. to acquire a 41.8% interest in Shagrir.
Pointer currently owns 54.5% of the issued share capital of Shagrir and the acquisition will increase Pointer´s shareholding in Shagrir to 96.3%. The remaining 3.7% of the shares of Shagrir are held by present and former managers of Shagrir and the company intends to purchase such additional shares under similar terms.
In consideration for the 41.8% interest in Shagrir the company said it will pay NIS29m (approximately USD8.3m) and issue 914,000 ordinary shares of Pointer.
A definitive agreement is expected to be entered into by December 31, 2013 with the closing of the transaction anticipated to take place no later than March 31, 2014.
Shagrir provides mobile resource management and roadside assistance services for the automotive industry including towing services and mobile automobile repair services (primarily in Israel), and also offers car sharing services via Car2Go in urban areas throughout Israel.
Pointer Telocation is a provider of technology and services to the automotive and insurance industries, offering a set of services including road side assistance, stolen vehicle recovery and fleet management. For more information: http://www.pointer.com