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SOURCE Micronet Enertec Technologies, Inc.
The Accretive acquisition Positions Micronet as a Leader in the Global MRM Space
MONTVALE, N.J., May 7, 2014 /PRNewswire/ --
Micronet Enertec Technologies, Inc. (NASDAQCM: MICT) announced today that its subsidiary, Micronet Ltd., signed a definitive agreement to acquire the Mobile Resource Management/FM business division of U.S.-based Beijer Electronics Inc., a wholly owned subsidiary of Beijer Electronics, a Swedish publicly traded corporation headquartered in Stockholm. Closing of the deal is expected by mid-June 2014.
Micronet is purchasing all related intellectual property, product rights, production files, customer base, sales and marketing network, sales leads and initiatives, technical support operation, all related agreements and the necessary inventory. As part of the transaction, MRM/FM division employees will join Micronet to ensure a successful continuous operation and growth of the company.
Beijer's MRM/FM rugged tablets complement and often used to compete with the Micronet product line, offering products with some additional features. The combined company will offer comprehensive product lines targeting different market segments including the largest and fastest growing local fleets, as well as long haul, heavy equipment and workforce field verticals.
Global marketing and sales efforts will be consolidated immediately and accelerated to take advantage of the superior product offerings and the market demand.
David Lucatz, Micronet Enertec CEO, commented: "Experts estimate that the MRM/FM hardware market will exceed $2B during 2014-2016. This strategic acquisition better positions Micronet to gain a significant share of this dynamic growing market. The combined product lines including our recently launched Android-based 317 series and Beijer's products will offer a complete suite of MRM/FM applications."
Mr. Lucatz added: "This acquisition strengthens Micronet's focus on the U.S market, broadens our customer base and expands our operations into new verticals. As the revenues from our major client decline, this acquisition diversifies our client base and creates a healthier and more balanced Company. We're confident that the combination of the companies will ensure our future growth."
About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. operates through two companies, Enertec Systems 2001 Ltd ("Enertec"), its wholly-owned subsidiary, and Micronet Ltd ("Micronet"), in which it has a controlling interest. Micronet operates in the growing commercial Mobile Resource Management (MRM) market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments. Enertec operates in the Defense and Aerospace markets and designs, develops, manufactures and supplies various customized military computer-based systems for missile defense systems, command and control and others. The Company's products, solutions and services are designed to perform in severe environments and battlefield conditions. For more information please visit: www.micronet-enertec.com, the content of which is not incorporated by reference into this press release.
This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding the acquisition discussed above, timing for its closing, the success of the integration of the acquired division, gaining market share, broadening and diversifying our customer base, expansion of our operations and our future growth. Such forward-looking statements and their implications involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in the company's annual report on Form 10-K for the year ended December 31, 2013 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
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