Chris Wolfe

Mobile asset management technology provider I.D. Systems has entered into a definitive agreement to acquire the assets of Keytroller, LLC, a manufacturer and marketer of a wide range of electronic products for managing forklifts, construction vehicles, and other industrial equipment.

The purchase price is USD9 million at close, consisting of USD7 million in cash and USD2 million in I.D. Systems common stock, plus up to USD3 million in earn-out consideration over two years, also in I.D. Systems common stock.

According to an I.D. Systems statement, the two companies' market positions and distribution channels are highly complementary. I.D. Systems sells its flagship PowerFleet industrial truck management systems primarily to large global enterprises and through forklift manufacturers (OEMs), while Keytroller markets most of its products through a large network of forklift dealers to small and medium-size end-users. PowerFleet rarely competes head-to-head with Keytroller devices.

By combining Keytroller's mid-range and economy products with PowerFleet, I.D. Systems aims to become an unmatched single source of fleet management technology for industrial truck owners and operators, which the company believes will help it compete more effectively and diversify its revenue sources. The acquisition of Keytroller also gives I.D. Systems a new source of industrial truck usage data for its PowerFleet IQ analytics database, enhancing the value of that tool for multi-site enterprises.

"We are ... excited by our planned acquisition of Keytroller," says I.D. Systems CEO Chris Wolfe. "Keytroller's business complements our industrial truck management segment incredibly well, from product mix and market position to sales cycle and customer diversification. The acquisition should contribute immediately to I.D. Systems' revenue and profitability, as well as position the company to achieve a more predictable, profitable revenue stream from a much more diverse customer base.

"We look forward to integrating Keytroller's operations smoothly into our corporate family and leveraging the benefits of this acquisition as we continue to focus on future growth."

The acquisition of Keytroller is expected to close before the end of July, 2017, upon satisfaction of customary closing conditions.