ROSH HAAYIN, Israel, September 17, 2013 /PRNewswire/ --
Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and roadside assistance services for the automotive industry, announced today that it has entered into a definitive agreement with Bracco do Brasil Empreendimentos e Participações Ltda. ("Bracco") to acquire 51.2% of the issued share capital of Pointer do Brasil Comercial S.A. ("Pointer Brazil"). Following the completion of the transaction Pointer will hold 100% of the issued share capital of Pointer Brazil.
The closing of the transaction is expected to take place in October 2013.
In consideration for the shares Pointer will pay to Bracco approximately US$ 4.3 million in cash, for which it is to receive financing from banks, and shall repay loans to Bracco and a local bank, over a period of eighteen months, in an aggregate amount of approximately US$ 1.2 million.Commenting on the agreement, David Mahlab, Pointer's CEO said: "We are happy to announce the signing of the agreement to acquire 51.2% of Pointer Brazil and turning it into a wholly owned subsidiary. This accretive acquisition is in line with our strategic goal for international growth. We established Pointer Brazil with local partners in 2009 and we expect the acquisition will increase Pointer's revenues as well as improve our results. This acquisition is a proof of Pointer's trust in our Latin America business" concluded Mr. Mahlab. About Pointer Telocation: Pointer Telocation is a leading 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. Pointer has a growing list of customers and products installed in more than 45 countries. Cellocator, a Pointer Products Division, is a leading AVL (Automatic Vehicle Location) solutions provider for stolen vehicle retrieval, fleet management, car & driver safety, public safety, vehicle security and more. The Company's top management and the development center are located in the Afek Industrial Area of Rosh Ha'ayin, Israel. For more information: http://www.pointer.com About Pointer Brazil: