Nasdaq-listed Powerfleet, a provider in the Artificial Intelligence of Things (AIoT) Software-as-a-Service (SaaS) sector yesterday attained a secondary listing on the Johannesburg Stock Exchange (JSE) as its merger with MiX Telematics nears completion.
“This strategic move aims to harness the robust capital markets in South Africa, propelling Powerfleet's growth and expanding its global footprint,” the company said in a statement.
Powerfleet listed on the Nasdaq in 1999. As part of its expansion move it was in the final stages of completing its business transaction with MiX Telematics, a South African company specialising in fleet and mobile asset management solutions, which was announced in October last year.
Steve Towe, Powerfleet's CEO, said, “The transformative combination positions Powerfleet as a leading, global AIoT SaaS company, setting the stage for accelerated growth in recurring revenues, increased profitability, and expanded avenues for creating shareholder value.
“We're swiftly executing a proven business integration strategy known for delivering concrete outcomes, underpinned by a robust Ebitda expansion program. This approach is designed to accelerate the integration process, allowing us to promptly focus on driving increased shareholder value and enhancing our customers’ experience. Committed to rapid and effective integration, we are highly confident we will emerge as a strongly unified, differentiated, and efficient company."
Powerfleet’s listing brings the number of listings on the JSE to 284 with an overall market cap of R17.84 trillion.
Valdene Reddy, a director of Capital Markets at the JSE, said, “We are thrilled to welcome Powerfleet on the JSE and excited to see a healthier pipeline of listings for the year. The company’s decision to list with us underscores the JSE’s position as a gateway for global firms seeking to access African capital markets. We look forward to supporting Powerfleet in their growth journey and witnessing the synergies this business combination brings to our dynamic market.”
Upon completion, the deal would result in Powerfleet acquiring all outstanding shares of MiX Telematics, it said.
Consequently, MiX Telematics' ordinary shares and American Depositary Shares have been delisted from the JSE and the New York Stock Exchange, respectively, consolidating the two entities in the mobile asset AIoT SaaS landscape.
The of MiX Telematics’ and Powerfleet's business models, markets, and operational strategies was expected to yield substantial value for shareholders, with a combined subscriber base of approximately 1.7 million.
Upon consummation of the business combination, MiX Telematics shareholders will exchange their MiX Telematics shares for Powerfleet common shares. The post-transaction ownership of the combined company will consist of approximately 65.5% of Powerfleet common shares held by former MiX Telematics shareholders and 34.5% of Powerfleet common shares held by existing Powerfleet shareholders.
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