I.D. Systems, Inc., a provider of enterprise asset management and Industrial Internet of Things (IoT) technology, and Pointer Telocation a leading provider of telematics and mobile IoT solutions, have entered into a definitive agreement whereby I.D. Systems will acquire all of the outstanding shares of Pointer in a cash and stock transaction valued at approximately $140 million.

Total consideration of $140 million comprised of approximately $72 million in cash and approximately 11 million shares of PowerFleet, Inc., a newly-created holding company.

Approximately $3.5 million of cost savings expected to be realized within the first 12 to 18 months following the close of the acquisition. Abry Partners to invest $50 million in a convertible preferred equity investment that will be funded contemporaneously with closing.

I.D. Systems has secured a commitment from Bank Hapoalim for a $30 million term loan and a $10 million revolving credit facility, which will be funded contemporaneously with closing of the Pointer acquisition.

The Combined company is expected to have over $20 million of cash on-hand and credit facilities at closing.