January 12, 2010 - I.D. Systems acquired Asset Intelligence,a business unit of General Electric, for $15 million in cash, with an additional cash consideration of up to $2 million payable upon the achievement of certain performance milestones. Asset Intelligence provides trailer and container tracking solutions for manufacturers, retailers, shippers and freight transportation providers, and has more than 120,000 units under contract."
This acquisition positions I.D. Systems to become the world's preeminent provider of wireless information technology for managing high-value corporate assets," said Jeffrey Jagid, I.D. Systems' Chairman and CEO.
"The focus of Asset Intelligence on trucking, rail, marine and intermodal applications significantly expands the scope of assets addressed by I.D. Systems' solutions. The customer base, alliances and technology of Asset Intelligence also fit exceptionally well within I.D.
Systems' strategic growth plan, which includes organic growth with existing customers, cultivation of new applications and markets, development of new sales channels, and expansion of our intellectual property portfolio-all with the goal of making our revenues more diversified and predictable, and increasing shareholder value." Asset Intelligence's service-oriented contract model provides I.D. Systems with a high-margin, recurring revenue stream that should increase our top-line results over prior years and help reduce quarterly revenue volatility," emphasized Mr. Jagid.
"The acquisition also provides cross-selling opportunities; we can offer I.D. Systems' vehicle management systems to customers of Asset Intelligence and Asset Intelligence's trailer tracking systems to customers of I.D.
Systems."
