I.D. Systems to Acquire Pointer Telocation for $140 Million

It is not clear whether this is a merger or an acquisition, but the bottom line is clear: The provider of wireless M2M solutions for managing assets and vehicles, I.D. Systems from New Jersey, is paying $140 million for the Israeli based Pointer Telocation. Pointer provides Wireless solutions and cloud-based software platform for Mobile Resource Management (MRM). Its annual 2018 sales reached $77.8 million, compared to $53 million of I.D. Systems.

The acquisition will be effected through a holding company structure: I.D. Systems and Pointer will each become wholly-owned subsidiaries of the newly-created PowerFleet, Inc., which is expected to be dual listed on Nasdaq and the Tel Aviv Stock Exchange. The transactions will be funded through a combination of a $50 million convertible preferred equity investment by Abry Partners and a $30 million debt financing by Bank Hapoalim (Israel).

The Acquisition expected to close in the Summer of 2019. Following the approval, I.D. Systems CEO, Chris Wolfe, and CFO, Ned Mavrommatis, are to lead the combined company with Pointer CEO, David Mahlab, to serve as CEO International. Pointer CFO, Yaniv Dorani will serve as Deputy to CEO International. “The acquisition combines our product leadership in North America with Pointer’s technology and broad international footprint,” said Wolfe.

Mahlab (photo above) said the deal is about to increase Pointer’s penetration in North America, “as well as expand our share of the global multi-billion-dollar IoT telematics market.” Today Pointer Telocation is engaged in a  technological collaboration with Microsoft Israel, building an AI system for modeling and understanding driver behavior. The system will learn based on the large volume of driver behavior data collected by Pointer historically as well as on an ongoing basis. The analysis will be performed using Microsoft Azure cloud.

Pointer’s goal is to build a predictive system for driver behavior. The system will be able to forecast those drivers which are more likely to be involved in a future road accident in light of the way they drive and their history. It will also be able to indicate which component of their driving needs improving, in order to reduce their risks

NanoLock and Micron Co-developed Flash Security

NanoLock Security and Micron Technology, will be demonstrating a Flash-to-Cloud management solution for security in Internet of Things (IoT) and connected devices. The combined solution provides secure updates and protection of IoT devices with Micron’s Authenta Technology embedded in flash memory devices. The combination of NanoLock Security’s platform with Authenta, enable strong Flash-to-Cloud integrity and protection from the production line to field deployment, and after the device’s end of life, while consuming virtually zero computing and power resources.

“This emphasizes the universal need for trusted management with enhanced security in IoT devices,” said Yoni Kahana, VP of customers for NanoLock. “A secure channel between end devices and the cloud, and the ability to seamlessly manage that channel simplifies IoT deployments and simultaneously provides a revenue stream for customers.” The demonstration will take place at Mobile World Congress 2019 in Barcelona.

At electronica 2018 in Munich, NanoLock and Winbond demonstrated end-to-end security solution to IoT devices such as automotive ECUs/MCUs, cameras, ICS solutions and routers. The OS/CPU agnostic solution guarantees flash-to-cloud integrity and mutual protection during regular operations and firmware-over-the-air (FOTA) updates.

NanoLocks MoT (Management of Things) platform updates, controls and monitors connected devices, while its FOTALock Management platform secures the FOTA (Firmware Over the Air) updates. The company was founded in 2016 by seasoned industry executives. Among them the CEO Eran Fine, previously the Founder and CEO of OREE which was sold to Diogano.  Erez Kreiner¸ co-founder and Senior Cyber Advisor of NanoLock, served as Director of Israel’s National Cyber Security Authority for more than five years. In this role he was was responsible for preventing cyber-attacks on Israel’s critical infrastructures and assets.