Acquisition expected to create an industry powerhouse with total revenue anticipated to exceed $400m – including more than $300m of recurring high margin SaaS revenue.
Powerfleet, a leading provider of AIoT SaaS solutions for the mobile asset industry, has announced a definitive agreement providing for the strategic acquisition of Fleet Complete, a prominent player in connected vehicle technology and fleet management.
With 2.6 million total combined subscribers and forecasted combined revenue of over $400 million, the acquisition is expected to solidify Powerfleet’s position as a global leader in the rapidly expanding AIoT market, driving toward ‘Rule of 40’ SaaS financial performance in the medium term.
Fleet Complete is a leading provider of essential fleet, asset and mobile workforce management solutions across North America, Australia and Europe. More than half of Fleet Complete’s revenue is generated through strong distribution partnerships with major international telecommunications providers and market-leading OEMs.
Compelling benefits expected from the transaction include:
- Market Leadership: The addition of Fleet Complete strengthens Powerfleet’s strategic position as a leader in the AIoT SaaS market, with a combined subscriber base of 2.6 million. The increased scale solidifies Powerfleet’s enhanced competitive position relative to the other largest players in the industry as the only market leader offering a full suite of seamless over-the-road and in-warehouse solutions.
- Geographic Expansion and GTM Diversification: The acquisition strengthens Powerfleet’s North American presence and fuels top-line growth in key international markets, including Europe and Australia. The integration of Fleet Complete’s high-velocity mid-market business with Powerfleet’s enterprise operations creates a balanced and resilient business model across regions, reducing risk and enhancing growth potential.
- Unity and AI Innovation: The acquisition significantly enhances the scale of Unity’s data ingestion, integration capabilities and cross-sell/upsell potential with the addition of 600,000 new subscribers. Fleet Complete’s AI-powered video solution, FC Vision, also expands Unity’s AI-driven offerings, particularly in the camera space, further advancing Powerfleet’s leadership in AI innovation and accelerating time-to-market for new solutions.
- Robust Indirect Channel: The acquisition opens significant cross-selling opportunities through Fleet Complete’s well-established indirect channel relationships, especially with major US and Canadian telecommunication carriers, offering considerable growth potential.
- Enhanced Shareholder Value: Highly accretive transaction, valued at 8 times pre-synergy and 5 times post-synergy adjusted EBITDA, with improved geographical revenue mix and multiple avenues for accelerated topline growth driving toward ‘Rule of 40 SaaS financial performance in the medium term.
Steve Towe, CEO, Powerfleet, said: “The agreement to acquire Fleet Complete is a transformative milestone for Powerfleet and is expected to significantly enhance our revenue quality and bolster our EBITDA by increasing our scale and operating presence across North America and Europe. It will also extend significantly our go-to-market reach through established channel partnerships with some of the world’s largest telecommunications providers.
“Additionally, it will support the strength of our revenue streams by integrating Fleet Complete’s high-velocity mid-market business with our enterprise base; and expand the reach of our unique Unity data highway and innovative in-warehouse solutions across the Fleet Complete established subscriber base, creating powerful cross- and up-sell opportunities with existing customers and a compelling value proposition for new customers.”
Tony Lourakis, CEO, Fleet Complete, said: “The disruptive and differentiated intent of Powerfleet’s Unity strategy was a key factor in our decision to join forces.
“Unity’s device-agnostic capabilities, expanding suite of prepackaged third-party system integrations, and advanced AI align seamlessly with the long-term vision for our state-of-the-art FC Hub platform. The business combination will allow us to deliver deeper insights and enhanced solutions to customers. By leveraging Unity’s powerful technology and Powerfleet’s full technology portfolio, we can accelerate innovation across our offerings and provide even greater value to our combined customer base.”
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